Shell Sells Rhode Island Power Plant to Constellation for $715 Million

Shell is reshuffling its U.S. power portfolio by selling its 609 MW Rhode Island gas-fired plant to Constellation Energy for $715 million while acquiring a 169 MW Pennsylvania facility. These transactions reflect a shift in Shell’s regional strategy to focus its trading footprint within the PJM Interconnection market.

"As Constellation's business in New England grows, we need a reliable asset that is well-positioned on both the electric grid and the natural gas pipeline system. RISEC checks all of these boxes and will be immediately accretive to Constellation's business plan," said Joe Dominguez, CEO of Constellation, in a statement.

Transaction Details and Financial Impact

The sale involves the Rhode Island State Energy Center (RISEC), a natural gas-fired asset. While the headline price is $715 million, the actual net cash outlay for Constellation is expected to be $580 million, after accounting for $135 million in first-year tax benefits.

Simultaneously, Shell is acquiring 100% of Hunlock Creek Generating LLC in Pennsylvania. This acquisition includes a 125 MW combined-cycle plant and a 44 MW peaking plant, according to a company announcement. Both deals remain subject to customary regulatory approvals and are scheduled to close in the first quarter of 2027.

Strategic Portfolio Management

The move reflects a management strategy for the energy company. By offloading the Rhode Island asset, Shell is pivoting toward assets that align with its trading objectives in the PJM Interconnection, a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia.

"We selectively invest in assets that strengthen our market position and create value, while remaining ready to realize value when market conditions present attractive opportunities," said Andrew Smith, Shell's President of Trading & Supply.

What Is at Stake for Regional Power Markets

For Constellation, the acquisition of RISEC increases its generation capacity in the ISO-New England market, a region facing pressure to maintain reliable baseload power. For Shell, the exchange allows the company to reallocate capital toward assets that integrate with its existing trading and supply infrastructure in the mid-Atlantic, showing the ongoing consolidation of gas-fired generation assets across the U.S. electrical grid.