Constellation Receives FERC Approval for Calpine Acquisition

Constellation Energy Corporation said it has received regulatory approval from the Federal Energy Regulatory Commission (FERC) for its previously announced acquisition of Calpine Corporation.

The approval represents the most recent step forward in the transaction following earlier approvals by the New York Public Service Commission and the Public Utility Commission of Texas, the company said in a news release.

The transaction, which is expected to close in the fourth quarter of 2025, remains subject to clearance by the Department of Justice and other customary closing conditions, according to the release.

“We appreciate FERC’s timely attention, review and approval of this transaction,” Constellation President and CEO Joe Dominguez said. “As electricity demand accelerates, this combination gives us the ability to best serve the nation’s industries and communities with the clean, always-on power they need to grow and thrive”.

The two companies have entered into an agreement under which Constellation will acquire Calpine in a cash and stock transaction valued at an equity purchase price of approximately $16.4 billion, composed of 50 million shares of Constellation stock and $4.5 billion in cash plus the assumption of approximately $12.7 billion of Calpine’s net debt.

After accounting for cash that is expected to be generated by Calpine between signing and the expected closing date, as well as the value of tax attributes at Calpine, the net purchase price is $26.6 billion, Constellation said earlier.

The acquisition “creates the cleanest and most reliable generation portfolio in the USA, with a diverse, coast-to-coast portfolio of zero- and low-emission generation assets,” Constellation said.

The combination of Constellation and Calpine will have nearly 60 gigawatts (GW) of capacity from zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration and battery storage. The combined company’s footprint will include a significantly expanded presence in Texas, the fastest growing market for power demand, as well as other key strategic states, including California, Delaware, New York, Pennsylvania, and Virginia, according to a statement.

Calpine’s low-emission natural gas plants “will play a key role in maintaining grid reliability for decades to come,” Constellation said. The Baltimore-based company stated it will invest in adding more zero-emission energy to the grid by extending the life of existing clean energy sources, exploring new advanced nuclear projects, investing in renewables and increasing the output of existing nuclear plants, in addition to restarting the Crane Clean Energy Center in Pennsylvania.

Commitment to Invest Billions in Nuclear Energy in Pennsylvania

Earlier in the month, Constellation said it committed to investing “billions of dollars” in nuclear energy projects to fuel economic growth in Pennsylvania.

Constellation, which employs 2,500 people in the state, has asked the U.S. Nuclear Regulatory Commission to renew the operating license of the Peach Bottom Clean Energy Center to run until at least 2054. The company is also planning to operate the Limerick Clean Energy Center well into the 2040s and is working to secure customer commitments to increase its capacity by an additional 340 megawatts (MW), according to a separate statement.

Constellation’s Crane Clean Energy Center is now expected to return to service in 2027, about a year ahead of schedule. The plant will generate electricity into the 2050s and will add approximately 835 MW of energy to the grid in Pennsylvania, the company said.

“These investments will help power innovation in AI and other industries that will define the future for Pennsylvania and all Americans,” Dominguez said. “We commend state and federal leaders for helping to make these investments possible and for recognizing the unique value of reliable and safe nuclear energy to power our economy and bolster our nation’s energy security. Constellation’s acquisition of Calpine will further accelerate our investments, establishing a coast-to-coast platform capable of supporting growing demand for around-the-clock, sustainable power”.

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