Constellation Energy's Q2 2026 management commentary emphasizes that customers increasingly demand an 'all-of-the-above' approach—combining existing generation with batteries and demand response—supported by regulatory actions that accelerate contracting for integrated energy solutions. The discussion highlights a blended procurement strategy and the enduring value of current assets, particularly for large-load and data-center applications.
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What did management say about Customer demand for integrated energy solutions?
Management indicated that customers increasingly want “all of the above”—an integrated mix of resources (including existing generation plus flexibility tools like batteries and demand response)—rather than choosing only a single technology or relying only on new capacity. 1 They also connected this demand to customers’ growing sophistication about grid operations and reliability/capacity concepts. 1
Management said customers have become more sophisticated about the grid, and that these customers seek “all of the above”—explicitly including combinations such as batteries and demand response, alongside broader capability. 1 They also tied this to what they see in their contracting—e.g., relicensing facilities adding life and uprates with clients—while still recognizing an important role for existing megawatts in the ecosystem. 1
Management linked improved customer contracting interest to regulatory developments that create faster/more reliable pathways for serving large loads. In June, they referenced FERC actions to move more quickly in establishing new pathways for large loads, including interconnection tariff justification and PJM-related requirements, and they described these initiatives as potentially creating pathways for customers to access affordable solutions more quickly while maintaining reliability. 2 Management further stated that as these frameworks develop, the value of existing generation and infrastructure will become increasingly apparent, and that their fleet is positioned to help meet objectives by leveraging assets already connected and operating (while also adding new capacity). 2
Management gave a specific example around a customer choosing batteries or backup generation: even if batteries/backups handle certain hours (e.g., management), customers still need to buy power/energy for the other hours. 3 They argued that because of this, existing resources become critical to delivering “quick solution sets,” rather than waiting for each load to interconnect only after new generation is built. 3
Management rejected the idea that procurement strategies are strictly bifurcated between existing and new resources. They said customers discuss opportunities to add megawatts in combination with existing capabilities, and that the “best outcome” involves using “stranded capacity” (wires and generation) because it is fastest and reduces costs. 4 They also emphasized that while peaks must be managed (batteries/demand response/other peaking resources), the ongoing/most-hours value comes from the fleet as a “fixed-price, clean energy resource” customers can count on for decades. 5
Management described the data-economy context as one where customer needs involve both peak management and energy delivery across essentially all other hours. 3 They argued that plans combining flexibility tools with existing clean generation provide a practical foundation for early-phase data economy buildout, rather than forcing reliance on new builds for interconnection timing. 3
Management described expectations that rule clarity and market frameworks will support hybrid solutions: adding batteries/other devices to existing operating generation and co-locating load near that facility. 6 They explicitly characterized these “mixing new capacity resources, existing generation and co-locating that with load” hybrid approaches as the promise going forward. 6
Management’s message is that customer demand is moving toward integrated energy solutions that blend:
They believe regulatory acceleration (FERC/PJM-related) increases customer confidence to pursue long-term contracting for these integrated approaches. 27
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