$715 million buys Constellation Energy the 609-MW Rhode Island State Energy Center from Shell Energy North America, pricing the Johnston, Rhode Island combined-cycle facility at roughly $1.17 million per megawatt. Announced Thursday, the deal expands Constellation's position in the ISO New England market. Shell separately agreed to acquire 169 MW of Pennsylvania gas capacity, with financial terms on that transaction not published.
Shell acquired RISEC in 2025 from Carlyle, which had held a majority stake in the combined-cycle plant. Andrew Smith, Shell's president of trading and supply, said the sale enables Shell to realize significant value on an accelerated timeline. Smith described the company's approach as selectively investing in assets that strengthen market position while being prepared to realize value when market conditions allow. Constellation Chairman, President, and CEO Joe Dominguez called RISEC a high-performing asset and said it complements Constellation's customer business in New England. The plant is expected to join Constellation's merchant generation portfolio on close.
| Asset | MW | Market | Deal price |
|---|---|---|---|
| Rhode Island State Energy Center | 609 | ISO-NE | $715M |
| Hunlock Creek Generating LLC | 169 | PJM | Not disclosed |
Both deals are expected to close in the first quarter of 2027.
Load growth and the M&A cycle
Shell's Pennsylvania buy covers Hunlock Creek Generating LLC, owned by Riverview Power Holdings LLC, an indirect subsidiary of Castleton Commodities International. The Hunlock portfolio consists of a two-unit 125-MW combined-cycle plant and a 44-MW simple-cycle peaker. Those two figures sum to the stated 169 MW. The assets serve the PJM Interconnection market, a separate grid from ISO New England, where RISEC adds capacity to Constellation's merchant generation portfolio.
Power sector M&A grew 173% by value in the first half of this year to $216 billion, compared with the first half of 2025, according to PwC. Electric load growth, driven in part by AI data center demand, is what PwC said is fueling a new M&A cycle in power and utilities. Financial sponsors remain active across independent power producers, behind-the-meter platforms, and energy-as-a-service models, PwC noted in a June report, adding that the sector remains attractive to those investors even as strategic deal volumes climb. At $715 million for 609 MW, RISEC is the only asset from Thursday's announcements with a published acquisition price.