New York Governor Kathy Hochul Revives Nuclear Power Ambitions After 3-Decade Pause: Constellation Energy, Cameco Gain

New York is planning to build its first nuclear reactor in decades, with the ability to produce at least 1 gigawatt of power, Governor Kathy Hochul said on Monday.

The state’s power authority will develop an advanced, “zero-emission” facility in upstate New York, the governor said, before describing nuclear power as the only commercially viable option that can deliver the clean, renewable, reliable power that the state will require.

“We need electricity that's reliable all day long, regardless of the weather outdoors,” Hochul said to reporters.

New York’s push for its first nuclear reactor since 1989 marks a nationwide shift in the acceptance of nuclear power, seen as key to meeting the rising electricity demand driven by data centers. Hochul said that the state needs to rapidly increase its capacity over the next decade to avoid blackouts.

Constellation Energy, the top power producer in the U.S., owns and operates New York State's three active nuclear power plants. The three facilities are all situated upstate along Lake Ontario. Together, they generate approximately 3.3 gigawatts, supplying around 20% of the state's electricity.

Hochul said that several communities in upstate New York are interested in the project. Constellation stock rose 3.4% on Monday while Cameco, which co-owns nuclear reactor developer Westinghouse, gained 2.1%.

Nuclear power currently represents about 18% of the total electricity generation capacity in the U.S, slightly down from over 20% in the 90s. Last month, President Donald Trump signed several executive orders to support the deployment of nuclear plants.

Retail sentiment on Stocktwits about Constellation remained in the ‘bearish’ (38/100) territory late on Monday, while retail chatter remained ‘low.

Constellation stock has gained 39.2% this year.

The company is looking to close its $16.4 billion deal for Calpine Corp and has so far received regulatory clearances from Texas and New York.

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