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DOJ Settlement Clears Constellation’s $26.6 Billion Calpine Deal With Plant Selloffs

The consent decree marks the DOJ’s first electricity‑merger settlement in 14 years.

Overview

  • DOJ and Texas settled their antitrust complaint by requiring Constellation to divest six power plants plus a minority stake, clearing the Calpine acquisition.
  • The decree names Calpine’s 828‑MW York 2 plant in Pennsylvania, the 609‑MW Jack A. Fusco plant near Houston, and a 19‑MW stake in the Gregory facility near Corpus Christi for sale.
  • The proposed settlement will be published in the Federal Register for a 60‑day comment period, and the deal can close once a court signs the stipulated order, with closing expected in early 2026.
  • After closing, Constellation must enter contracts to sell the divested assets within 240 days, supplementing FERC’s earlier order to sell four PJM plants totaling nearly 3,550 MW.
  • Regulators said the remedies preserve competition in ERCOT and PJM, which they alleged could otherwise face over $100 million a year in higher costs, and the combined portfolio is projected at about 55 GW post‑divestitures.