Constellation has agreed to divest power plants in Pennsylvania and Texas under a resolution with the U.S. Department of Justice tied to completing its acquisition of Calpine.
The Federal Energy Regulatory Commission approved the transaction conditioned on the divestiture of four of Calpine’s generating assets in the Mid-Atlantic region: Hay Road, Edge Moor, Bethlehem, and York 1.
As part of the DOJ resolution, Constellation also agreed to divest York 2, a 828-megawatt natural gas-fired, combined-cycle plant in Pennsylvania, as well as the Jack Fusco Energy Center, a 605-megawatt natural gas fired combined cycle facility located outside Houston, Texas, and a minority ownership interest in the Gregory Power Plant, a 385-megawatt natural gas fired combined cycle near Corpus Christi, Texas.
"Since the announcement of this transaction in January, the market has increasingly recognized the critical importance of natural gas generation to meet the nation's electricity demand driven by onshoring of manufacturing, enhanced electrification, and the growing data economy. As a consequence, the company expects a robust market for these assets and that it will receive attractive value for the sale further reinforcing the strategic rationale for the deal," Constellationsaid.
This approval represents the most recent and final regulatory approval in the transaction following earlier approvals by the Federal Energy Regulatory Commission, the New York Public Service Commission and the Public Utility Commission of Texas.
The parties can begin closing the transaction once a court has signed the stipulation and order agreed to by the parties and DOJ.
