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Released July 29, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Federal Energy Regulatory Commission's (FERC) green light to Constellation Energy Corporation's (Baltimore, Maryland) $16.4 billion acquisition of Calpine Corporation (Houston, Texas) includes certain conditions to avoid Constellation's having too much market share of power generation on the PJM grid.
FERC's approval of the merger last week comes after approvals by utilities commissions in Texas and New York, but the agency isn't the final voice in the process. On a federal level, that falls to the Department of Justice (DOJ), which will determine whether the move would unduly affect market competition, particularly on the PJM Interconnection , which covers portions of 13 states in the northeastern U.S. The DOJ's announcement is expected in the fourth quarter of this year. FERC's conditional approval, however, may hold a solution, requiring the divestment of four power plants on the PJM grid, all currently owned and operated by Calpine and amounting to about 3.5 gigawatts (GW) of generation. The plants to be sold include:
The deal will ensure Constellation's strength across various fuel types in the U.S. power sector. Constellation already owns the U.S.' largest nuclear fleet, operating 21 reactors, while Calpine boasts the largest natural gas-fired fleet in the U.S. as well as the country's largest geothermal fleet. In total, Calpine owns about 27 GW of U.S. generation, and the sale will push Constellation's total U.S. generation to about 60 GW. In addition to the large amount of natural gas plants, Constellation also will be gaining solar, battery and geothermal operations from Calpine, include the largest operating geothermal field in the world, The Geysers in northern California, which produces about 740 MW. Subscribers can learn more by viewing the plant profile.
Both nuclear and natural gas stand to be strong beneficiaries under the Trump administration, which has issued directives to encourage increased generation and easier operations for both nuclear and fossil-fueled power in the form of eased construction, operations and emissions regulations.
While the PJM's independent marketing monitor, Market Analytics (Eagleville, Pennsylvania), will be keeping tabs on further Constellation growth on the PJM grid, expansions on other grids should have an easier time. Calpine, for example, is underway with a project in Fairfield, Texas, to expand its gas-fired capacity on the Electric Reliability Council of Texas (ERCOT) grid. Engineering, procurement and construction contractor Kiewit Corporation (Lenexa, Kansas) broke ground on the addition of peaking units at the Freestone Power Plant last summer. The plant in about a year's time will be home to 442 MW of easily dispatched electricity for times when demand is high, coming in the form of two 221-MW simple-cycle units. The units are expected to be completed in the summer of the 2026. Subscribers can learn more by viewing the project report.
Constellation already is adding untapped nuclear capacity to PJM by restarting the 835-MW Unit 1 at the former Three Mile Island nuclear power station, renamed the Crane Clean Energy Center, in Pennsylvania. Constellation and Microsoft Corporation (Redmond, Washington) made headlines last year when a power purchase agreement between the two companies facilitated the reopening of the unit, which stopped operating in 2019 for economic reasons. Constellation now says the unit could begin operating again by as soon as 2027, a year ahead of the company's original schedule. Subscribers can learn more by viewing the reports on the reactor restart and turbine restart.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
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 200,000 current and future projects worth $17.8 trillion (USD).
FERC's approval of the merger last week comes after approvals by utilities commissions in Texas and New York, but the agency isn't the final voice in the process. On a federal level, that falls to the Department of Justice (DOJ), which will determine whether the move would unduly affect market competition, particularly on the PJM Interconnection , which covers portions of 13 states in the northeastern U.S. The DOJ's announcement is expected in the fourth quarter of this year. FERC's conditional approval, however, may hold a solution, requiring the divestment of four power plants on the PJM grid, all currently owned and operated by Calpine and amounting to about 3.5 gigawatts (GW) of generation. The plants to be sold include:
- The 1,134-megawatt (MW) Bethlehem Energy Center in Pennsylvania. (Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for the plant profile.)
- The 569-MW York Energy Center in Delta, Pennsylvania (see plant profile).
- The 1,136-MW Hay Road Power Station in Wilmington, Delaware (see plant profile.
- The 707-MW Edge Moor Energy Center, also in Wilmington (see plant profile.)
The deal will ensure Constellation's strength across various fuel types in the U.S. power sector. Constellation already owns the U.S.' largest nuclear fleet, operating 21 reactors, while Calpine boasts the largest natural gas-fired fleet in the U.S. as well as the country's largest geothermal fleet. In total, Calpine owns about 27 GW of U.S. generation, and the sale will push Constellation's total U.S. generation to about 60 GW. In addition to the large amount of natural gas plants, Constellation also will be gaining solar, battery and geothermal operations from Calpine, include the largest operating geothermal field in the world, The Geysers in northern California, which produces about 740 MW. Subscribers can learn more by viewing the plant profile.
Both nuclear and natural gas stand to be strong beneficiaries under the Trump administration, which has issued directives to encourage increased generation and easier operations for both nuclear and fossil-fueled power in the form of eased construction, operations and emissions regulations.
While the PJM's independent marketing monitor, Market Analytics (Eagleville, Pennsylvania), will be keeping tabs on further Constellation growth on the PJM grid, expansions on other grids should have an easier time. Calpine, for example, is underway with a project in Fairfield, Texas, to expand its gas-fired capacity on the Electric Reliability Council of Texas (ERCOT) grid. Engineering, procurement and construction contractor Kiewit Corporation (Lenexa, Kansas) broke ground on the addition of peaking units at the Freestone Power Plant last summer. The plant in about a year's time will be home to 442 MW of easily dispatched electricity for times when demand is high, coming in the form of two 221-MW simple-cycle units. The units are expected to be completed in the summer of the 2026. Subscribers can learn more by viewing the project report.
Constellation already is adding untapped nuclear capacity to PJM by restarting the 835-MW Unit 1 at the former Three Mile Island nuclear power station, renamed the Crane Clean Energy Center, in Pennsylvania. Constellation and Microsoft Corporation (Redmond, Washington) made headlines last year when a power purchase agreement between the two companies facilitated the reopening of the unit, which stopped operating in 2019 for economic reasons. Constellation now says the unit could begin operating again by as soon as 2027, a year ahead of the company's original schedule. Subscribers can learn more by viewing the reports on the reactor restart and turbine restart.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
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 200,000 current and future projects worth $17.8 trillion (USD).
