These old plants are ridden with hidden costs, and I would bet all of my money no one at Microsoft is aware of the scale of this. I'm not talking "hidden costs" like you didn't do your homework. I'm talking hidden costs like you need to be on the inside, on the ground, to know about. Hidden costs like "everyone subtly nods but doesn't say it out loud" kind of hidden costs.
The NRC has beyond suffocating regulation for nuclear energy. This is maybe a good thing in some regards. But let me put it this way:
Imagine you bought a car from 1975 and could _only_ put in original parts. Need a new battery? Better find out how to get a factory one from 1975. Can't get one from 1975? Be prepared to pay millions, perhaps tens of millions, for a mountain of testing and certification for a new $100 part that is still just an off the shelf battery.
It's hard to say without knowing the details of the contract. I highly doubt Constellation put themselves in a position to be vulnerable to cost overruns. Or perhaps they see the deal as a shiny pendant they can dangle in front of dumb PE money when they want to cash out in the future.
Trust me, cynicism is well warranted with these ancient plants.
All of the articles say the deal is Microsoft agreeing to buy power for 20 years. It's possible that's wrong/incomplete, but it would be weird. Constellation's stock rose 20%, so the market at least thinks they'll make decent money on it.
And it may be an "ancient plant" but it was operational 5 years ago, under Constellation's management.
These old plants are ridden with hidden costs, and I would bet all of my money no one at Microsoft is aware of the scale of this. I'm not talking "hidden costs" like you didn't do your homework. I'm talking hidden costs like you need to be on the inside, on the ground, to know about. Hidden costs like "everyone subtly nods but doesn't say it out loud" kind of hidden costs.
The NRC has beyond suffocating regulation for nuclear energy. This is maybe a good thing in some regards. But let me put it this way:
Imagine you bought a car from 1975 and could _only_ put in original parts. Need a new battery? Better find out how to get a factory one from 1975. Can't get one from 1975? Be prepared to pay millions, perhaps tens of millions, for a mountain of testing and certification for a new $100 part that is still just an off the shelf battery.