Constellation Energy (CEG.US) rose over 12% before the market opened! It has reached a 20-year power purchase agreement with Microsoft (MSFT.US).

Constellation Energy (CEG.US) said on Friday that it signed a 20-year power purchase agreement with Microsoft (MSFT.US) to use the purchased power to help its carbon-free energy in its data centers in the PJM region. The agreement will pave the way for the recovery of a unit at the Three Mile Island nuclear plant in Pennsylvania and keep it online for decades. The news boosted Constellation Energy's shares by over 12% before the market opened on Friday.

Constellation Energy said that it is the largest power purchase agreement in its history. The financial terms of the agreement were not disclosed. The company said it plans to fund the project itself, rather than seeking support from the state or federal government. It said it expects the Three Mile Island plant to be back online in 2028 and will seek a license renewal to keep the plant operating until at least 2054.

Constellation Energy President and CEO Joe Dominguez said: "This plant was one of the safest and most reliable on the grid before it was prematurely closed for economic reasons. We look forward to bringing it back under a new name."