Constellation Energy Completes Calpine Acquisition

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Written by Danny Levin, Deputy Editor for IIR News (Sugar Land, Texas)

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Summary

Constellation Energy, the largest nuclear power company in the U.S., has finalized its acquisition of Calpine Corporation.

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Constellation's Calpine Purchase

Constellation Energy (Baltimore, Maryland) and Calpine (Houston, Texas) did not disclose financial terms, but previous announcements indicate approximately $16.4 billion in stock and $4.5 billion in cash for a total purchase price of $26.6 billion. Constellation also said previously it would assume approximately $12.7 billion of Calpine net debt.

In a Wednesday press release, Constellation, which operates the U.S. largest nuclear fleet, said it now would create the "nation's largest producer of electricity ... by uniting Constellation's zero-emission nuclear fleet with Calpine's industry-leading natural gas and geothermal generation ... the company is building the foundation for America's next great era of innovation -- powering the data centers, advanced manufacturing facilities and critical infrastructure that will define the AI age..."

"The acquisition also strengthens Constellation's footprint in high-demand regions, including Texas and California, while maintaining significant operations in Illinois, Maryland, New York and Pennsylvania."

"With 55 gigawatts (GW) of capacity, Constellation and Calpine together will be the platform where new clean technologies can scale -- including advanced nuclear, geothermal, carbon capture and sequestration, and long-duration storage."

Industrial Info is tracking 61 operational plants with Calpine as the parent company and 65 operational plants attributed to Constellation. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can see a full list of Calpine and Constellation's plants.

The Acquisition Requires Plant Divestment

However, the Federal Energy Regulatory Commission (FERC) and the Department of Justice (DOJ) approved the transaction with conditions, including the divestment of Calpine assets in the PJM Interconnection (PJM) and Electric Reliability Council of Texas service areas. The DOJ mandated the divestment of the following three natural gas-fired combined-cycle units:

• The 828-megawatt (MW) York 2 in Delta, Pennsylvania
• The 605-MW Jack Fusco Energy Center outside Houston, Texas
• Calpine's minority ownership in the 385-MW Gregory Power Plant near Corpus Christi

FERC mandated the sale of four generating assets totaling about 3.5 GW of generation, mainly serving the PJM market, in order to avoid Constellation having too much market share on the grid:

• 1,134-MW Bethlehem Energy Center in Pennsylvania
• 569-MW York 1 in Delta, Pennsylvania
• 1,136-MW Hay Road Power Station in Wilmington, Delaware
• 707-MW Edge Moor Energy Center, also in Wilmington

Subscribers to the Global Market Intelligence (GMI) Power Plant Database can see plant profiles for the related facilities.

For more information, see July 29, 2025, article - FERC's Approval of Constellation's Acquisition of Calpine Requires Divestment of Four Power Plants.

Constellation's Efforts to Boost Nuclear Generation

The energy company's portfolio includes 26 nuclear reactors in six states.

Last month, the U.S. Nuclear Regulatory Commission (NRC) approved the company's request to extend the operating licenses at two nuclear facilities in Illinois: units 2 and 3 at the Dresden nuclear power plant, and the Clinton Clean Energy Center (1.21 GW from a single reactor). The approvals allow the Dresden units to operate through 2049 and 2051, respectively, and Clinton through 2047.

Subscribers can read profiles for the Dresden and Clinton facilities.

Constellation is uprating the Clinton reactor, which will allow the company to supply its 20-year power purchase agreement with Meta Platforms Incorporated (Menlo Park, California) for the full output.

The energy company also is looking to restart the fully-shut down Three Mile Island nuclear power station in Pennsylvania, to be renamed the Crane Clean Energy Center. It's slated to be back online in 2027, providing more than 800 MW of power capacity.

Last month, Constellation announced the restart now is backed by a $1 billion loan from the U.S. Department of Energy (DOE). Shortly after the announcement, U.S. Energy Secretary Christopher Wright toured the facility, saying the following regarding nuclear power: "we want to keep existing plants open. We want to open ... plants that were prematurely closed. We are expediting the building of new plants."

Subscribers to the GMI database can read detailed projects reports regarding the Crane restart.

This comes as the Trump administration aims to streamline the federal permitting process for energy assets.

But in an opinion piece earlier this month, Neil Chatterjee, who served as FERC Commissioner during Trump's first administration, threw cold water on the Three Mile Island restart. He noted a fully shut-down nuclear plant has never been restarted in the U.S. "for good reason: there are too many regulatory, material and logistical hurdles to overcome, as "reactors that were permanently shut down must go through an extensive regulatory review process and request special exemptions for both their operations and use of radioactive fuel."

He also said nuclear projects have a long history of going over budget and past schedule.

In Constellation's third-quarter earnings call in November, Chief Financial Officer Dan Eggers said the company's capital allocation strategy would remain unchanged after the Calpine deal closed. The latest figures indicate around $3 billion in capital expenditures for 2025 and $3.5 billion in 2026, including infrastructure upgrades and the Three Mile Island restart. About 35% of the spending is attributed to nuclear power.

Subscribers to Industrial Info's GMI Plant Database can click here for a full list of detailed profiles for plants mentioned in this article.

Key Takeaways

• Constellation operates the U.S.' largest nuclear fleet.
• Constellation said the Calpine acquisition will make it the largest power producer in the country.
• The company's growth projects are largely focused on building out its nuclear footprint.
• Calpine's assets include natural gas and geothermal generation.

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About IIR News
IIR News is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).