Major U.S. utility Constellation said it has completed its acquisition of Calpine Corp. from Energy Capital Partners (ECP), creating the nation’s largest producer of electricity. The companies on January 7 noted that the transaction, first announced as a $16.4-billion deal a year ago, unites Constellation’s nuclear power fleet with Calpine’s natural gas-fired and geothermal generation. The cash-and-stock deal, when including debt, has a total value of $26.6 billion.
The groups said the merged company will power data centers, advanced manufacturing facilities, and critical infrastructure.
“This isn’t just about two great companies coming together—it’s about strengthening America’s future,” said Joe Dominguez, president and CEO of Constellation, in a statement “Constellation is stepping up to power America’s growth when our nation’s demand for energy is surging, and our global competitors are racing to capture AI leadership. By uniting Constellation and Calpine, we’re providing the reliable, clean energy that keeps our communities strong, our businesses competitive and our nation secure.”
Andrew Novotny, president and CEO of Calpine, said, “This is an exciting day for both our companies and for the customers and communities we serve. We have the assets that power America today and meet the needs of tomorrow. Our expanded capabilities will allow us to better serve customers and communities, enable investment in critical infrastructure and support national priorities for energy security, economic competitiveness and technological leadership. Our teams share a relentless commitment to safety, sustainability and operational excellence, and I’m excited about what we will accomplish together.”
“As a decades-long investor in power generation, ECP aims to unlock value, drive long-term growth opportunities and strengthen asset reliability—often serving as a bridge between public and private markets,” said Tyler Reeder, president and managing partner of ECP. “We are proud to have achieved those goals in partnership with Calpine’s management team and believe this combination validates that vision, setting the company up for future success while meeting the evolving needs of its customers, communities and the U.S.’s electrical grid.”
The combined company will serve 2.5 million retail and business customers nationwide . The groups said 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.
Constellation and Calpine together have 55 GW of generation capacity. The company will maintain headquarters in Baltimore, Maryland, along with a significant presence in Houston, Texas.
—Darrell Proctor is a senior editor for POWER.
