Constellation Energy has agreed to buy the Rhode Island State Energy Center in Johnston from Shell Energy North America for $715 million, transferring one of the state’s central generating assets to the nation’s largest independent power producer if regulators approve the deal. Constellation announced the agreement on September 10 and said the transaction is expected to close after customary approvals and other closing conditions.
The plant, commonly known as RISEC, can generate up to 609 megawatts from two natural-gas combustion turbines and one steam turbine. It sells electricity and capacity into the competitive ISO New England wholesale market rather than directly to Rhode Island households. Constellation said the facility would join its merchant-generation portfolio and continue operating under its current ownership until the transaction closes.
RISEC has served the regional grid since 2002. Its combined-cycle design captures heat from the gas turbines to produce additional electricity through the steam turbine, which Constellation says makes the facility more efficient and lower-emitting than a conventional single-cycle natural-gas plant. The company has not announced a fuel conversion or expansion as part of the purchase.
The proposed sale does not itself change a customer’s utility, supply contract or retail rate. Its immediate significance is ownership and control of a large in-state generator that participates in the regional market. Reuters reported that both this transaction and a separate Shell acquisition in Pennsylvania are expected to close in the first quarter of 2027, subject to regulatory approval.
A rapid second ownership change
The agreement would mark another ownership change for the Johnston facility. Shell announced in October 2024 that it would acquire RISEC Holdings, then completed that purchase in 2025. At the time, Reuters reported that Shell had already held a contract for all of the plant’s energy output since 2019. The new agreement would transfer 100% of RISEC Holdings to Constellation.
Constellation valued the $715 million purchase price at about $580 million after expected first-year tax benefits. The company also said it expects the acquisition to add immediately to operating earnings after closing and to exceed its 10% unlevered-return target. Those are corporate projections, not guarantees about future plant performance or Rhode Island electricity prices.
The buyer described the plant as flexible generation that can support regional reliability. Industry publication Utility Dive noted that the acquisition would expand Constellation’s ISO New England portfolio while Shell shifts capital toward the PJM market through a separate Pennsylvania gas-plant purchase.
For Rhode Island, the practical next step is the regulatory process. The companies have not announced a closing date more precise than the first quarter of 2027, and Constellation said RISEC’s current owner will remain responsible until the deal closes. Residents should therefore treat the agreement as pending rather than completed, while watching for federal or state filings that identify any conditions placed on the transfer.
