NuScale Wouldn't Own a Reactor in the Deal Driving Its Stock

NuScale Power's $4 billion market valuation is largely based on a Tennessee Valley Authority deal to deploy up to 72 of its small modular reactors. However, the agreement is actually between TVA and ENTRA1 Energy (NuScale's commercialization partner), not NuScale directly. Under the structure, ENTRA1 owns and operates the plants while NuScale acts as a supplier with capped module prices. NuScale is already paying ENTRA1 milestone payments ($507.4 million for the first milestone), with a $1.2 billion payment due upon a binding power purchase agreement. The analyst recommends staying on the sidelines until actual module order terms are revealed.