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Constellation To Acquire 609 MW Power Plant In ISO-NE; Shell To Acquire 169 MW Of Gas-Fired Generation Capacity In PJM
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Constellation announced an agreement to acquire 100% of RISEC Holdings, LLC (RISEC), owner of the Rhode Island State Energy Center, from Shell Energy North America, (US), L.P. (SENA), a subsidiary of Shell plc (Shell), for $715 million, subject to customary purchase price adjustments.
Located in Johnston, R.I., the Rhode Island State Energy Center is a combined-cycle electric generation facility, fueled by natural gas. The facility has two combustion turbines and one steam turbine and is capable of generating up to 609 megawatts of electricity.
"The facility sells electricity and capacity into the competitive ISO New England wholesale power market and is expected to become part of Constellation’s merchant generation portfolio," Constellation said
"The Rhode Island State Energy Center is a high-performing asset that perfectly complements Constellation’s extraordinarily successful customer business in New England," said Joe Dominguez, chairman, president and chief executive officer, Constellation.
"As Constellation’s business in New England grows, we need a reliable asset that is well-positioned on both the electric grid and the natural gas pipeline system. RISEC checks all of these boxes and will be immediately accretive to Constellation’s business plan," Dominguez said
RISEC has served the New England power grid since 2002.
The $715 million purchase price is equivalent to approximately $580 million net of expected first year tax benefits, Constellation said
Constellation said that the transaction is expected to be immediately accretive to Constellation’s operating earnings, deliver returns above the company’s 10% unlevered return threshold, and will not impact its ability to execute $5 billion of authorized share repurchases by the end of 2027.
The transaction is expected to close following receipt of customary regulatory approvals and satisfaction of other closing conditions.
Shell Energy North America has maintained an energy conversion agreement with RISEC for the plant's full electricity output since 2019, which will terminate upon completion of the transaction.
Shell Energy North America (US), L.P. (SENA) also announced SENA's acquisition of 100% equity in Hunlock Creek Generating LLC (Hunlock), which owns 169 megawatts (MW) of natural gas-fired generation capacity in Pennsylvania (PJM).
Hunlock's portfolio includes a two-unit, 125-MW combined-cycle power plant and a 44-MW simple-cycle peaking plant. Hunlock is currently owned by Riverview Power Holdings LLC, an indirect subsidiary of Castleton Commodities International LLC.
Shell said that the Hunlock acquisition secures supply and capacity offtake for SENA in the Mid-Atlantic power grid operated by PJM
"Hunlock and its subsidiary own 169 MW of natural gas-fired generation capacity in Pennsylvania. The asset further strengthens SENA's position in the PJM market through access to flexible gas-fired generation and reinforces Shell's continued focus on investing in assets that complement its trading capabilities," Shell said
"These transactions reflect our dynamic approach to managing our trading portfolio," said Andrew Smith, Shell's President of Trading & Supply. "We selectively invest in assets that strengthen our market position and create value, while remaining ready to realize value when market conditions present attractive opportunities."
"SENA's earlier acquisition of RISEC ensured continued access to the plant's capacity and associated trading opportunities in the market, enabling SENA to deliver substantial value as part of its asset-backed trading portfolio. With this transaction, SENA will bring forward the return it expected to generate from its longer-term ownership through a significant gain on the sale," Shell said
"SENA's focus is on power markets where it can play to its strengths, including trading and optimization, backed by increased access to battery energy storage systems and flexible power plants," Shell said
The Hunlock acquisition is projected to generate returns that exceed Shell's investment requirements for its power business as outlined at Shell's Capital Markets Day in 2025, Shell said
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September 11, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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