Constellation Sells $5 Billion PJM Gas Portfolio to LS Power in Calpine Deal Resolution
Event summary
- Constellation Energy to sell 4.4 GW of PJM gas-fired assets to LS Power for $5 billion, resolving DOJ/FERC antitrust requirements from Calpine acquisition.
- Portfolio includes Bethlehem, York 1/2, Hay Road, and Edge Moor facilities in Delaware/Pennsylvania at $1,142/kW valuation.
- Transaction follows December 2025 DOJ resolution and July 2025 FERC approval of Calpine deal, closing expected later this year pending regulatory approvals.
- Remaining divestiture: Jack Fusco Energy Center (606 MW) in Texas; Gregory Power Plant minority stake already sold.
The big picture
This $5 billion asset sale marks the final major hurdle in Constellation's Calpine acquisition, creating the world's largest private power producer. The transaction underscores regulatory scrutiny of market concentration in PJM, where dispatchable gas generation remains critical amid surging demand. LS Power's expansion reflects institutional confidence in thermal assets' role during the energy transition.
What we're watching
- Regulatory Approval Timing
- Whether DOJ/FERC will clear the $5 billion transaction by year-end as Constellation projects.
- LS Power Integration
- How LS Power's operational expertise translates to seamless assimilation of PJM assets and workforce.
- PJM Market Dynamics
- The pace at which electricity demand growth in PJM validates Constellation's divestiture strategy.
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