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Constellation Energy is selling certain natural gas generation assets to LS Power Equity Advisors, which satisfies regulatory commitments related to its recent 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. Under the agreement, LS Power will acquire approximately 4.4 gigawatts 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.
“This transaction is an important step in satisfying the DOJ’s requirements and advancing our path forward,” Joe Dominguez, president and CEO of Constellation, said. “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, the DOJ outlined a series of divestitures designed to address competitive considerations, which followed divestitures requirements in the PJM Interconnection territory made by FERC in July 2025. This sale to LS represents the largest and most substantive element of the DOJ and FERC resolutions.
“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,” Paul Segal, CEO of LS Power, said. “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 606-megawatt Jack Fusco Energy Center, a natural gas fired combined cycle facility located outside Houston, 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-megawatt natural gas fired combined cycle near Corpus Christi was divested earlier this year.
Constellation completed its acquisition of Calpine on Jan. 7, 2026, creating the world’s largest private-sector power producer.
