NEW YORK, Jan 16, 2026, 18:10 EST — After-hours
Shares of Constellation Energy Corporation plunged on Friday, slipping as much as 9.8% to $307.71 in after-hours trading after fluctuating between $350.62 and $300.45 earlier. The selloff came after the White House urged PJM Interconnection—the country’s largest electric grid serving 67 million customers across 13 states plus Washington, D.C.—to hold a one-time emergency procurement auction for new power plants and impose limits on earnings for existing plants in PJM’s capacity market, which pays generators to stay on standby. This follows a recent PJM capacity auction that saw prices surge over 800% compared to last year. Pennsylvania Governor Josh Shapiro criticized PJM for being “too damn slow” amid rising power bills. (Reuters)
Political pressure adds to a long-term demand forecast that still shows growth, fueled by data centers and other major energy users. In its updated 20-year outlook, PJM expects its summer peak to climb by about 85,000 megawatts (MW), surpassing 241,000 MW within 15 years, despite scaling back near-term projections. Jason Connell, PJM’s VP of planning, noted that improved demand data will aid efforts to “integrate these large energy users.” (PJM Inside Lines)
Constellation, a major player in nuclear power, is tapping into data-center demand; its Clinton plant in Illinois plans to sell electricity to Meta through a 20-year power purchase agreement. Any emergency auction would require the green light from the Federal Energy Regulatory Commission. Capstone analysts described the governors’ announcement as “policy signaling, not an imminent market reform,” estimating that an auction wouldn’t happen for at least six to 12 months. (Utility Dive)
The U.S. Energy Department announced that the auction would allow data-center operators to bid on 15-year contracts linked to new power plants, marking a departure from PJM’s usual market setup. The proposal also aims to have big new consumers cover the costs of new generation built for them, regardless of their actual power usage. (The Department of Energy’s Energy.gov)
PJM announced it is reviewing its guiding principles and, later Friday, revealed a strategy to handle soaring demand linked to Big Tech’s AI expansion. New large power users will be required to supply their own generation or join a “connect and manage” system that may involve early curtailment — a temporary reduction in power consumption during peak times. (Reuters)
The policy news shook up the entire data-center power sector, not just Constellation. GE Vernova jumped 6.1% on the day, while Vistra tumbled 7.5%, per Investopedia. (Investopedia)
U.S. markets are closed Monday for Martin Luther King Jr. Day, pushing the next trading day to Tuesday. Traders will focus on whether PJM initiates an emergency auction or adjusts capacity pricing. They’ll also look for hints that large-load customers are changing their power contracting strategies ahead of summer. (New York Stock Exchange)
Turning principles into firm rules is never straightforward, and price caps have their downsides. Push returns too low, and developers might hold back on new projects — exactly what the grid can’t afford. That risk is already factored into the stock price.
Pennsylvania Governor Josh Shapiro revealed that PJM’s board is weighing changes to the rules for the 2028-29 capacity auction set for June. He also supports extending the price cap mechanism for the next two auctions. Traders are now zeroing in on how this move will impact Constellation and other power companies exposed to PJM. (Pa)
