Constellation Energy Corporation announced an agreement with LS Power to sell a portfolio of power generation assets in the PJM region valued at $5 billion. This transaction aligns with requirements imposed by the U.S. Department of Justice (DOJ) and the Federal Energy Regulatory Commission (FERC) as a condition for the acquisition of Calpine, completed in January 2026.
The agreement includes the transfer of approximately 4.4 gigawatts of installed capacity, primarily in natural gas-fired combined cycle plants located in Delaware and Pennsylvania. The facilities include Bethlehem, York 1 and 2, Hay Road, and Edge Moor.
LS Power Strengthens Its Presence in a Key Market
For its part, LS Power highlights that this acquisition strengthens its consolidation strategy in one of the regions with the highest growth in electricity demand. The company brings more than 35 years of experience in energy generation plant development and operation.
In addition to operational strengthening, LS Power plans to seamlessly integrate the staff of the acquired plants and actively collaborate with local communities surrounding each facility.
Financial Details and Next Steps
The estimated acquisition price is $1,142 per kilowatt. Constellation received financial advisory from Barclays and SMBC/Jefferies, and legal support from Kirkland & Ellis. LS Power was advised by Santander and the firms White & Case LLP and Willkie Farr & Gallagher LLP.
The transaction is expected to close by late 2026, subject to final approval from FERC and DOJ, along with other customary requirements for this type of transaction.
Remaining Assets in the Sale Process
Within the regulatory framework, only the sale of the Jack Fusco plant, a 606 MW facility in Texas, remains to be completed. The minority stake in the Gregory plant was already sold earlier this year, fulfilling another step stipulated by the agreement with the Department of Justice.
Source: Constellation
