Constellation Energy to Divest $5B in 4.4GW PJM Gas Assets
Constellation Energy agreed to sell a portfolio of 4.4 gigawatts of gas-fired power plants in PJM to LS Power for $5 billion. The divestiture satisfies the largest DOJ and FERC mandates tied to its Calpine acquisition and values assets at roughly $1,142 per kilowatt.
1. Transaction Overview
Constellation Energy will divest approximately 4.4 gigawatts of gas-fired capacity in Delaware and Pennsylvania to LS Power for $5 billion, covering facilities including Bethlehem, York 1 and 2, Hay Road and Edge Moor. The implied valuation of about $1,142 per kilowatt highlights investor demand for dispatchable thermal generation.
2. Regulatory Requirements
This sale represents the largest portion of asset divestitures required by the DOJ and FERC under the conditions of Constellation’s January 2026 Calpine acquisition. Finalizing these disposals is essential for securing full regulatory approval and completing antitrust commitments.
3. Market and Strategic Impact
The transaction reduces Constellation’s PJM generation portfolio but fulfills crucial antitrust conditions, while LS Power expands its footprint in the region against tightening supply-demand balances. The deal underscores the premium on reliable thermal assets as renewable capacity grows.