Pennsylvania Governor pushes for Three Mile Island nuclear power plant to restart. Microsoft Corporation's supplier, Constellation (CEG.US), continues to rise.

According to reports, Pennsylvania Governor Josh Shapiro wrote to the electric grid operator PJM Interconnection, requesting the Three Mile Island reactor to "be put into operation as soon as possible, rather than waiting in line like a brand new development project." Boosted by this news, Constellation Energy (CEG.US) continued its momentum on Monday, with its stock price reaching $271.85 at one point. It is reported that last Friday, Constellation reached a 20-year power supply agreement with Microsoft Corporation (MSFT.US), under which the Three Mile Island nuclear power plant in Pennsylvania will provide power to Microsoft Corporation. Constellation's stock price surged by 23% as a result, marking the largest percentage increase ever and closing at a record $254.98. Shapiro stated that since 2021, PJM has stopped accepting new power generation project applications, and it is expected to reopen by 2026. Even once reopened, it is unlikely to approve new projects within a few years. Morgan Stanley analyst David Arcaro raised Constellation's target price from $233 to $313, and reiterated an "outperform" rating, stating that the company's 20-year contract with Microsoft Corporation "demonstrates the value of nuclear energy to large-scale enterprises, with potential for higher future prices." Wells Fargo & Company analyst Neil Kalton raised Constellation's target price from $250 to $300 and maintained a "buy" rating, stating that the company is in a unique position to take advantage of the long-term decarbonization trend. He believes that nuclear energy is an important component of America's future power structure, as the country aims to achieve net zero carbon emissions by 2050. Suiss Securities analyst Anthony Crowdell raised Constellation's target price from $189 to $255 and maintained a "neutral" rating. Crowdell stated that while he believes the price Microsoft Corporation is paying Constellation is higher than what other nuclear power suppliers are receiving from buyers, these profits are already reflected in the stock price.