New York, Jan 22, 2026, 14:56 EST — Regular session
- Constellation Energy shares slipped roughly 1% in afternoon trading, following an initial surge earlier in the session
- New York regulators have extended subsidies for the state’s nuclear fleet through 2049
- Traders are focused on PJM rule changes, federal actions affecting auction pricing, and a cold-weather demand spike expected on Jan. 27
Constellation Energy Corporation shares edged lower on Thursday as investors digested New York’s decision to prolong nuclear plant subsidies alongside renewed doubts over PJM power-market pricing. The stock fell 1.0% to $291.29 in afternoon trading, swinging between $289.55 and $302.48 earlier in the session.
This tug-of-war is crucial since Constellation’s profits hinge on wholesale power prices and the payment rules for generators during demand surges. Policy changes can swiftly alter those rules, and the stock is now trading as if it’s a direct vote on those shifts.
Much of the attention is on PJM, where officials have proposed capping future auction prices and making new data centers bear a larger share of grid expansion costs. PJM’s “capacity” auctions determine payments to power plants that commit to being available during upcoming peak seasons; a cap would restrict the earnings of those plants.
New York regulators on Thursday extended subsidies that keep the state’s nuclear power plants financially afloat, pushing the program through 2049, the Times Union reported. “This (nuclear power) is an important part of our energy mix … we need more generation, not less,” said Public Service Commission member Uchenna S. Bright. Constellation, the operator of the plants, argued the fleet remains crucial to protect customers from “higher electric prices” and “potential service disruptions,” the report said. 1
The New York ruling clashes with a wider political effort to control electricity costs across PJM’s 13-state territory plus Washington, D.C. Governors were gearing up to finalize a deal with the Trump administration that would impose two-year price caps on upcoming PJM auctions. The plan also aims to make new data center players like Amazon and Google pay a bigger share of grid expansion expenses, Reuters reported. Senator Chris Van Hollen argued that consumers “shouldn’t have to foot the bill for big corporations’ massive expansion of data centers.” 2
Analyst calls weighed on sentiment. On Tuesday, Wells Fargo’s Shahriar Pourreza lowered his fair value target to $460 from $478 but maintained an “overweight” rating. Shares of Constellation dropped nearly 5% that day, according to a separate report. 3
Regulators kept up the pressure Thursday. The Federal Energy Regulatory Commission upheld a previous decision, partially approving PJM’s compliance filing under Orders 2023 and 2023-A—rules designed to alter the connection process for new generation projects on the grid. 4
Weather remains a key short-term factor. On Thursday morning, PJM’s seven-day forecast projected demand reaching 144,465 megawatts on Jan. 27 — surpassing the winter record set in January 2025, according to Reuters. The grid operator expects 180,800 megawatts of available capacity. Meanwhile, the National Weather Service warned an Arctic blast will sweep across the eastern two-thirds of the U.S. by early next week. 5
Constellation isn’t the only one reacting. Vistra and Talen Energy, both heavyweights in the PJM market, have also seen sharp moves following the same policy news. This underscores that the shifts are driven by sector-wide forces, not just individual companies.
The downside remains straightforward to outline. Should regulators enforce tight caps or alter rules to curb capacity payments, generators in PJM may see their cash-flow forecasts drop once more, no matter what short-term weather boosts demand.
Constellation widened its reach in the sector by finalizing the purchase of Calpine earlier this month, claiming the move made it the country’s top electricity producer. This larger portfolio has its risks and rewards: it offers more assets to leverage but also increases vulnerability to shifts in local regulations. 6
On deck: next week’s cold snap and the Jan. 27 demand peak. Traders are also eyeing updates from PJM and federal officials—any sign that emergency auctions, price caps, or other market-rule shifts might jump from discussion to formal filings will grab attention.
