New York, Jan 20, 2026, 19:58 EST — Trading after hours.
- Constellation Energy shares dropped roughly 4% following a price target cut from Wells Fargo
- The PJM policy clash on data-center expenses has power producers on high alert
- Traders are focused on the Jan. 22 PJM talks and the feedback deadline set for Jan. 30
Shares of Constellation Energy Corporation (Nasdaq: CEG) slipped about 4% to $295.40 in after-hours trading Tuesday. The drop followed a Wells Fargo analyst cutting his price target from $478 to $460. Shahriar Pourreza kept an Overweight rating, describing the stock as “catalyst rich” and his “Best IPP Idea” — shorthand for independent power producers. During the regular session, CEG shares ranged between $292.49 and $308.75. 1
The spotlight remains on the PJM power market, where just last week the White House and several governors pushed for price caps in upcoming capacity auctions. They also called for an “emergency” auction designed to fund new power plants servicing data centers. The proposal would force large electricity users to cover costs for generation built specifically for them — a “bring your own generation” tactic aimed at preventing data centers from driving up prices on existing supply. 2
PJM, which provides power to 67 million customers across 13 states plus Washington, D.C., announced that new large power users must either bring their own generation or face early curtailment under a “connect and manage” policy. The regional grid operator plans to submit parts of this plan to the Federal Energy Regulatory Commission. Board chair and interim CEO David Mills emphasized it’s not about banning data centers outright, but rather about balancing reliability and consumer impact. 3
Constellation’s decline came amid a wider risk-off mood following President Donald Trump’s fresh tariff warnings on Greenland, which shook markets and dragged stocks down across Wall Street and Europe. A Reuters report noted a broad selloff, boosting demand for safe havens like gold. 4
Constellation’s shares have been volatile since PJM news broke last week. On Friday, Constellation plunged close to 10%, while Vistra slid around 7.5%, following reports of an emergency-auction proposal that would require major tech firms to contribute to funding new power plant construction, Investopedia reported. 5
The debate is crucial because PJM’s capacity market, which pays power plants to guarantee future availability, has become a major earnings driver for certain generators amid tightening demand. Introducing a hard cap or altering the parties eligible to sign long-term contracts could swiftly impact margins and cash flows.
PJM’s board mapped out a quick timeline. It scheduled an initial chat on a “reliability backstop procurement” for Jan. 22 at its Members Committee. Stakeholders were also asked to weigh in on extending a price collar by Jan. 30, ahead of the July capacity auction. 6
Constellation, based in Baltimore, announced earlier this month it has finalized its acquisition of Calpine. The deal merges Constellation’s nuclear operations with Calpine’s natural gas and geothermal assets, forming a 55-gigawatt generation powerhouse. CEO Joe Dominguez said the company is “stepping up to power America’s growth” amid rising demand. 7
The rulebook keeps shifting. Should PJM and Washington push further on price caps or introduce a one-off procurement auction, generators might see actual prices fall below market expectations. That threat could easily overshadow any short-term analyst adjustments.
Traders are eyeing Wednesday for any new updates from PJM, the White House, or state officials. Attention will also be on whether Tuesday’s tariff-induced selloff extends further into defensives such as utilities. Key upcoming dates include the Jan. 22 meeting and the Jan. 30 feedback deadline for this trade.
