Constellation Energy Corporation and LS Power Equity Advisors announced an agreement under which Constellation will sell a portfolio of generation assets in PJM to LS Power, a step in satisfying regulatory commitments related to Constellation’s acquisition of Calpine.

The proposed sale represents the largest portion of the divestitures required by the U.S. Department of Justice (DOJ) as part of its antitrust review of the Calpine transaction, including all assets required to be divested by the Federal Energy Regulatory Commission (FERC). Under the agreement, LS Power will acquire approximately 4.4 GW of predominantly natural gas–fired generation capacity located in Delaware and Pennsylvania, including the Bethlehem, York 1, York 2, Hay Road and Edge Moor Facilities. The transaction is valued at $5 billion before closing adjustments, representing an acquisition price of approximately $1,142/kW.

“This transaction is an important step in satisfying the DOJ’s requirements and advancing our path forward,” said Joe Dominguez, president and CEO of Constellation. “These are well-run facilities that will continue powering consumers and businesses for decades to come. We’re pleased to be moving ahead and expect to complete the remaining DOJ requirements later this year.”

In December 2025, Constellation announced a resolution with the DOJ that outlines a series of divestitures designed to address “competitive considerations” in PJM and other markets. The DOJ resolution followed FERC’s July 2025 approval, which required the divestiture of certain assets in PJM. The latest announcement represents the largest and most substantive element of the DOJ and FERC resolutions. Closing is conditioned upon receipt of regulatory approvals, including review by the DOJ and FERC, and other customary closing conditions.

Last January, Constellation announced plans to acquire Calpine in a cash and stock transaction valued at an equity purchase price of approximately $16.4 billion. The deal became one of the largest in the history of power generation at a time when demand for electricity has exploded. Constellation already owns and operates the largest fleet of nuclear plants in the United States. Constellation is also the largest producer of clean energy in the U.S. The company generates more than 32,400 MW of capacity, including through nuclear, gas, wind, solar and hydropower assets.

Constellation sees the deal as a chance to expand its power generation portfolio in a time a record electricity demand growth. After years of flat demand, electricity load growth forecasts have exploded, largely driven by data centers, industry and electrification.

“PJM is at the epicenter of the surge in electricity demand, and these are exactly the kind of assets the grid needs – efficient, dispatchable gas generation that can deliver reliable power around the clock,” said Paul Segal, CEO of LS Power. “LS Power has been developing, building and operating gas-fired generation for over 35 years. We expect our extensive operational experience will enable seamless integration of the assets and their employees and look forward to engaging with plant staff and the local communities around the facilities.”

The Jack Fusco Energy Center, a 606-MW natural gas fired combined cycle facility located outside Houston, Texas, is the remaining facility in the DOJ resolution agreement that has not yet been divested. The minority ownership in the Gregory Power Plant, a 385-MW natural gas fired combined cycle near Corpus Christi, Texas, was divested earlier this year.

Constellation completed its acquisition of Calpine on Jan. 7, 2026, creating the world’s largest private-sector power producer and significantly expanding its generation footprint. The asset sale announced is expected to close later this year, subject to regulatory approvals.