Constellation sells 4.4 GW of gas-fired power plants to LS Power for USD5bn (US)

The US energy groups Constellation Energy and LS Power have announced an agreement under which Constellation will sell a portfolio of power generation assets in the PJM area (United States) to LS Power, described as a "key step" in satisfying regulatory commitments related to Constellation's acquisition of Calpine (Constellation Energy press release, 18/03/2026). The asset sale is expected to close later in 2026, subject to regulatory approvals.

• In December 2025, Constellation announced a resolution with the US Department of Justice (DOJ) outlining a series of divestitures designed to address competitive considerations in PJM and other markets.
• The DOJ resolution followed FERC's July 2025 approval, which required the divestiture of certain assets in PJM. When approving the deal, FERC required Constellation to sell four PJM power plants to prevent the company from using market power to affect electricity prices.

Under the agreement, LS Power will acquire approximately 4.4 GW of predominantly natural gas-fired generation capacity located in Delaware and Pennsylvania, including the Bethlehem (1.1 GW), York 1 (570 MW), York 2 (830 MW), Hay Road (1,140 MW), and Edge Moor (700 MW) facilities. The transaction is valued at USD5bn before closing adjustments, according to the press release.

In line with the DOJ resolution agreement, Constellation already sold its minority stake in the 385 MW Gregory CCGT power plant near Corpus Christi, Texas, earlier in 2026. The 606 MW Jack Fusco Energy Center CCGT power plant near Houston, Texas, is the remaining facility in the DOJ resolution agreement that has not yet been divested. 

Constellation is a major owner of electric generation assets in the United States, which controlled over 32 GW at the end of 2025, including 20 GW of generating capacity in PJM and approximately 5 GW in ERCOT. Calpine was a US energy company, producing power from natural gas and geothermal sources in the US and controlling 27 GW of capacity at the end of 2025, including approximately 9 GW of generating capacity in ERCOT and 5 GW in PJM. Constellation completed its acquisition of Calpine in January 2026, creating a major private-sector power producer and significantly expanding its generation capacity with nearly 60 GW of capacity.