NRG Energy will acquire 13 GW of gas-fired power plants and virtual power plant operator CPower from LS Power.

NRG and LS announced the agreement May 12 and said the cash and stock transaction is valued at about $12 billion, or roughly half of new-build cost for the assets.

NRG said the 18 natural gas facilities would roughly double its generation capacity. They are spread across nine states but are concentrated in areas where most of NRG’s existing load is located.

CPower, meanwhile, is an LS Power subsidiary that offers 6 GW of VPP capacity to more than 2,000 commercial and industrial customers in all of the deregulated U.S. energy markets.

NRG also reported solid first-quarter financials on May 12. Its stock price soared after the announcements, reaching a new all-time high in heavy trading and closing 26.2% higher than the previous close May 9.

In a joint news release, NRG and LS pitched the advantages the deal would offer NRG:

• • New quick-start capacity in the Northeast and Texas, simplifying risk management and lowering costs.
  • An immediate and strong value proposition, even without factoring price increases in tightening markets or large load prospects such as data centers.
  • Better ability to service rapidly growing demand for tailored long-term supply solutions, particularly data centers.
  • Potential for more than 1 GW of uprates, sites for possible development or co-location, and a differentiated commercial and industrial VPP platform.

NRG CEO Larry Coben said in the news release: “We are in the early stages of a power demand supercycle, and we are excited to lead the way with reliable energy solutions that will drive considerable value for NRG and all of our stakeholders.”

The acquisition is expected to close in the first quarter of 2026. It is subject to FERC and New York State Public Service Commission approval as well as federal antitrust review.

The sale would leave LS with about 10 GW of storage and natural gas and renewable generation capacity, as well as about 800 miles of existing transmission assets and 350-plus miles under construction.

LS CEO Paul Segal said the portfolio is uniquely suited for growing demand in the markets it serves and is being placed in capable hands. “LS Power will continue to invest in and develop secure and reliable energy infrastructure across the U.S.,” he said.

NRG reported GAAP net income of $750 million for the first quarter of 2025, or $531 million after adjustments, up from $511 million and $305 million in the same period a year earlier. The adjusted EBITDA set a first-quarter record for the company.

First-quarter 2025 earnings per share were $3.70 (GAAP) or $2.68 (adjusted), compared with $2.36 or $1.46 a year earlier.