Constellation announced on January 7 that it has completed its acquisition of Calpine Corp. from Energy Capital Partners. The transaction, first announced a year ago as a $16.4-billion deal, unites Constellation's nuclear power assets with Calpine's natural gas-fired and geothermal generation. Including debt, the total value reaches $26.6 billion.
"This isn't just about two great companies coming together—it's about strengthening America's future," said Joe Dominguez, president and CEO of Constellation. "Constellation is stepping up to power America's growth when our nation's demand for energy is surging, and our global competitors are racing to capture AI leadership. By uniting Constellation and Calpine, we're providing the reliable, clean energy that keeps our communities strong, our businesses competitive and our nation secure."
Andrew Novotny, president and CEO of Calpine, called it "an exciting day for both our companies and for the customers and communities we serve." He stated, "We have the assets that power America today and meet the needs of tomorrow. Our expanded capabilities will allow us to better serve customers and communities, enable investment in critical infrastructure and support national priorities for energy security, economic competitiveness and technological leadership."
Tyler Reeder, president and managing partner of ECP, noted that as a decades-long investor in power generation, ECP aims to unlock value and drive long-term growth opportunities. "We are proud to have achieved those goals in partnership with Calpine's management team and believe this combination validates that vision," Reeder said.
The combined company will serve 2.5 million retail and business customers nationwide. It will maintain headquarters in Baltimore, Maryland, along with a significant presence in Houston, Texas. The acquisition strengthens Constellation's footprint in high-demand regions including Texas and California, while maintaining operations in Illinois, Maryland, New York and Pennsylvania. Together, Constellation and Calpine have 55 GW of generation capacity.
On December 5, the U.S. Justice Department's Antitrust Division and the attorney general of Texas announced they would require divestiture of six power plants to resolve antitrust concerns. The Antitrust Division had filed a civil antitrust lawsuit to block the acquisition, while simultaneously filing a proposed settlement.
"The price of electricity is a pocketbook issue to American consumers working hard to afford their monthly utility bills," said Assistant Attorney General Abigail Slater. "When it comes to their electricity bills, Americans deserve the benefit of robust competition among electricity generators. This settlement includes a six-plant divestiture to an acquisition that risked harming tens of millions of electricity consumers in the mid-Atlantic and Texas."
The settlement requires divestiture of ownership interests in four electricity plants serving the PJM grid and two plants serving the ERCOT grid. The plants to be divested include the Bethlehem Energy Center in Pennsylvania, the York Energy Center in Pennsylvania, the Hay Road Energy Center in Delaware, the Edge Moor Energy Center in Delaware, the Jack A. Fusco Energy Center in Texas, and the Gregory Power Plant in Texas.
Officials said this marks the first settlement consent decree the Division has filed in an electricity merger in 14 years.