Constellation Energy will purchase the 609-MW Rhode Island State Energy Center from Shell Energy North America for $715 million, the companies announced Sept. 10, 2026. The acquisition expands Constellation's footprint in the ISO New England market, while Shell simultaneously grows its position in PJM Interconnection through a separate deal. Both transactions reflect accelerating merger and acquisition activity in the power sector, driven partly by surging electricity demand from AI data centers.
The Rhode Island State Energy Center is a combined-cycle gas facility located in Johnston, Rhode Island, and will join Constellation's merchant generation portfolio once the deal closes in the first quarter of 2027, according to the announcement. Shell bought the plant in 2025 from global investment firm Carlyle, which had held majority ownership. In its parallel transaction, Shell will acquire full equity in Hunlock Creek Generating LLC, which operates 169 MW of gas-fired capacity in Pennsylvania serving the PJM market—a two-unit, 125-MW combined-cycle plant plus a 44-MW simple-cycle peaking facility. Shell didn't disclose financial terms for the Hunlock purchase, which is also expected to close in early 2027. Hunlock is currently owned by Riverview Power Holdings LLC, an indirect subsidiary of Castleton Commodities International.
Power market mergers and acquisitions surged 173% in value during the first half of 2026 compared to the same period in 2025, reaching $216 billion, PwC reported in June. "Even with the increase in strategic M&A activity, the power and utilities sector remains an attractive market for financial sponsors," PwC noted. Constellation Chairman, President and CEO Joe Dominguez called RISEC "a high-performing asset that perfectly complements Constellation's extraordinarily successful customer business in New England." He added that as the company's New England operations expand, "we need a reliable asset that is well-positioned on both the electric grid and the natural gas pipeline system." Andrew Smith, Shell's president of trading and supply, said the deals "reflect our dynamic approach to managing our trading portfolio," with Shell investing selectively in assets that strengthen market position while remaining prepared to capture value when favorable opportunities arise.
Electric load growth, fueled in part by demand from AI data centers, is driving what PwC characterizes as a "new [mergers and acquisition] cycle" in the sector. Shell said the RISEC sale "enables Shell to realize significant value on an accelerated timeline," capitalizing on market conditions less than two years after acquiring the facility. The broader M&A surge suggests utilities and independent power producers are repositioning their portfolios to meet rising electricity consumption, with financial sponsors continuing to back independent generators, behind-the-meter platforms, and energy-as-a-service models despite the uptick in strategic deals.
The transactions underscore how quickly power companies are moving assets to capture emerging opportunities in regional electricity markets. Constellation gains a strategic foothold in New England's grid and pipeline infrastructure, while Shell strengthens its trading position in the mid-Atlantic. With both deals slated to close within months, the power sector's dealmaking momentum shows no signs of slowing as companies race to align their generation portfolios with surging demand.