Constellation Energy will sell nearly 4.4 GW of PJM generation assets to LS Power.
The agreement announced March 18 is valued at $5 billion before closing adjustments, or approximately $1,142/kW of capacity. It will satisfy many of the federal regulatory requirements attached to Constellation’s acquisition of Calpine, which owned the power plants LS Power has agreed to buy.
FERC ordered some generation assets divested as a condition of approval, and the U.S. Department of Justice added others in its antitrust review.
The Constellation-Calpine deal was completed Jan. 7, creating the world’s largest private-sector power producer, controlling approximately 55 GW of generating capacity.
FERC’s approval in July 2025 entailed Calpine selling 3,546 MW of generation, all of it in PJM: the 1,134-MW gas-fired combined-cycle Bethlehem Energy Center, the 569-MW dual-fuel combined-cycle York Energy Center Unit 1, the 1,136-MW dual-fuel combined-cycle Hay Road Energy Center and the 707-MW gas-fired simple-cycle Edge Moor Energy Center. (See FERC Approves Constellation Purchase of Calpine with Conditions.)
LS Power is buying those, along with York Unit 2, an 828-MW gas-fired combined-cycle plant, which the DOJ agreement added to the list. (See DOJ, Constellation, Calpine Reach Antitrust Settlement.)
The DOJ agreement also included the sale of the Jack Fusco Energy Center, a 606-MW gas-fired combined-cycle facility in Texas, and minority ownership in the Gregory Power Plant, a 385-MW gas-fired combined-cycle facility in Texas.
The stake in Gregory was divested earlier in 2026. Constellation CEO Joe Dominguez said in a news release that Fusco will be divested later in the year:
“This transaction is an important step in satisfying the DOJ’s requirements and advancing our path forward. 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.”
LS Power CEO Paul Segal said his company has been building and operating gas-fired power plants for more than 35 years and expects a seamless integration of these new assets: “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.”
The Constellation-LS Power transaction will require DOJ, FERC and other regulatory approvals.
