Constellation Energy announced the divestiture of 4.4 GW of natural‑gas generation capacity located in Delaware and Pennsylvania within the PJM interconnection. The assets—Bethlehem, York 1, York 2, Hay Road, and Edge Moor—will be sold to LS Power for a total of $5 billion, or roughly $1,142 per kilowatt of installed capacity.
The sale is a regulatory requirement imposed by the U.S. Department of Justice (DOJ) as part of the conditions for Constellation’s acquisition of Calpine Corporation. The DOJ resolution, issued in December 2025, and the Federal Energy Regulatory Commission (FERC) approval, granted in July 2025, both mandated divestitures to preserve market competition. Constellation still must complete the sale of the Jack Fusco Energy Center in Texas to fully satisfy DOJ obligations.
By divesting these assets, Constellation reduces its gas‑fired generation footprint in the PJM region while leaving its nuclear fleet and long‑term renewable and gas strategy intact. The transaction enables the company to move forward with the integration of Calpine’s portfolio, which adds significant natural‑gas and geothermal capacity to Constellation’s generation mix.
Concurrently, Constellation reported its Q4 2025 results on February 24 2026. Revenue rose to $6.07 billion, beating the $5.60 billion consensus estimate, and adjusted operating earnings reached $2.30 per share, a $0.13 beat over the $2.17 estimate. GAAP net income was $1.38 per share, down from $2.71 per share in Q4 2024. Full‑year 2025 adjusted operating earnings were $9.39 per share, up from $8.67 per share in 2024. Management indicated that a full‑year 2026 outlook would be discussed on March 31 2026.
Joe Dominguez, Constellation’s president and CEO, said, "This transaction is an important step in satisfying the DOJ's requirements and advancing our path forward." Chief financial officer Shane Smith added, "These are well‑run facilities that will continue powering consumers and businesses for decades to come. We're pleased to be moving ahead and expect to complete the remaining DOJ requirements later this year."
Investors reacted positively to the announcement, citing the regulatory compliance as a key milestone for the Calpine integration. The sale also reinforced Constellation’s positioning to capture growing demand for reliable, clean power from AI and data‑center customers, a tailwind highlighted in the company’s recent earnings release. The announcement was seen as a step toward stabilizing the company’s capital structure after the $26.6 billion Calpine acquisition.
LS Power’s purchase expands its footprint in the PJM market, adding five high‑capacity, well‑run natural‑gas plants that complement its existing generation and transmission portfolio. The acquisition aligns with LS Power’s strategy to strengthen its presence in the largest U.S. wholesale electricity market and to support long‑term power contracts for data‑center operators.
The divestiture satisfies DOJ and FERC conditions, clears a regulatory hurdle for Constellation’s largest acquisition to date, and positions the company to focus on its core nuclear and renewable assets while continuing to grow its gas‑fired capacity outside the PJM region. The transaction is a critical step in Constellation’s broader strategy to deliver clean, reliable power to a rapidly expanding AI and data‑center market.
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