Speaker is long CEG; views recent nuclear deals as positive for long-term strength despite short-term volatility.

On Tuesday, Google and Constellation Energy announced a 20-year, 890-megawatt power purchase agreement to upgrade 11 existing reactors in Illinois, Pennsylvania, and New Jersey—the largest upgrade deal ever made between a nuclear operator and a technology company, and I'm very excited about it.

We have held shares in Constellation Energy for almost two years now, and I truly believe this is a step in the right direction.

Constellation is investing more than $4.3 billion in plans to extract power equivalent to building a brand-new large reactor, with the first upgrade starting by 2028 and the remainder to be completed between 2032 and 2033.

Joe Dominguez, CEO of Constellation Energy, did not hesitate to explain why this timing was chosen. He says: "These are expensive projects, and we know we could have done this several years ago."

"But Google's intervention provided the financial support that enabled us to provide the equivalent of a new reactor."

Amazon signed a 20-year power purchase agreement with Constellation earlier this month to upgrade a Chesapeake Bay plant with an additional 190 megawatts of capacity.

Microsoft already has its own deal with Constellation, supporting the restart of the Three Mile Island plant in Pennsylvania, now renamed the Crane Clean Energy Center , a name I like; it's great.

Think of companies like Constellation Energy, VST, NRG and TLN. These are no longer just public utility companies . They have now become pillars of the energy infrastructure with contracts extending for a decade and a clear view of revenues.

The risk is exactly what we just saw happening in real time. These are huge capital commitments with payback periods that extend for years, and the market will punish any name in which the capital expenditure versus cash flow accounts appear exaggerated, which is probably why Constellation gave up all its gains within 48 hours of the news we just talked about.

There is still a lot of volatility to come here with companies like "Vistra" and "Constellation", but in the long run we think they are really strong companies in a sector that will continue to grow.