CEG · 10-Q · 2026Q2 · Full report

Calpine Acquisition Regulatory Remedies

Constellation Energy Corp · 2026-08-06 · Importance 96 · Surprise 100 · In source text

Constellation completed its acquisition of Calpine on January 7, 2026 and acquired a diversified fleet of natural gas, oil, geothermal, battery storage, and solar assets. The acquisition added $17,247 million of electric property and $1,234 million of construction work in progress, while also adding approximately $12.6 billion of debt. Under a Department of Justice resolution, the Brazos Valley Energy Center and two York Energy Centers are subject to sale, and additional plants were released from collateral after lenders agreed to capacity reductions in March, April, and June 2026.

Key facts

• In March 2026 we entered into an agreement to sell five generation assets in PJM comprising approximately 4.4 GW to LS Power for aggregate consideration of $5.0 billion before closing adjustments. source
• The DOJ resolution requires us to enter into definitive agreement(s) to divest the required assets within days of closing the acquisition, by September 4, 2026. source
• In August 2026 we entered into an agreement with LS Power to divest the Brazos Valley Energy Center (f/k/a Jack A. Fusco Energy Center) for $ million before closing adjustments; this is the last asset sale required to satisfy regulatory commitments and we expect the transactions to close by the end of this year. source
• The DOJ resolution requires divestiture of five generating assets located in PJM, one in ERCOT, and Calpine's minority interest in the Gregory Power Plant. source
• In January 2026 we completed the divestiture of Calpine's minority ownership interest in the Gregory Power Plant, as required under the DOJ resolution. source

Impact estimates