Baltimore, December 6, 2025
Constellation Energy Corporation has successfully acquired Calpine Corporation for $26.6 billion, positioning itself as a leading provider of clean energy. This merger, approved by the DOJ, will enhance Constellation’s capabilities and foster innovation in the energy sector. The deal includes divesting six generating assets to address competition concerns. With the combined strengths of both companies, Constellation aims to meet rising demand for clean, reliable energy, especially in Texas, contributing to a sustainable energy future.
Baltimore, Maryland
Constellation Energy’s Acquisition of Calpine Secures Clean Energy Future
Major merger positions Maryland firm as a leader in the energy sector
The recent resolution between Constellation Energy Corporation and the U.S. Department of Justice (DOJ) marks a significant milestone for Baltimore’s largest energy provider. With the approval of its $26.6 billion acquisition of Calpine Corporation, Constellation is set to pave the way for a formidable clean energy powerhouse in the nation. This merger exemplifies the resilience of local businesses in navigating regulatory landscapes while boldly pursuing growth opportunities.
As the trend of consolidation in the energy sector continues, this acquisition not only enhances Constellation’s position but also promises to foster further entrepreneurial innovation and economic development. As Baltimore entrepreneurs persist in their quest for growth amidst evolving market dynamics, it’s crucial to recognize how strategic business moves like this can influence the larger economic framework.
Details of the Acquisition
Constellation Energy Corporation’s acquisition of Calpine Corporation is valued at $26.6 billion, which includes a $16.4 billion equity purchase price and assumes approximately $12.7 billion of Calpine’s net debt. This transaction now has the necessary approvals from both the DOJ and the Federal Energy Regulatory Commission (FERC), though it comes with conditions aimed at maintaining competitive practices in key energy markets.
Regulatory Conditions
To address potential competition concerns in the Electric Reliability Council of Texas (ERCOT) and the PJM Interconnection grids, the DOJ has mandated Constellation to divest six generating assets. The divested facilities include the Bethlehem Energy Center and York Energy Center in Pennsylvania, the Hay Road and Edge Moor Energy Centers in Delaware, and the Jack A. Fusco Energy Center in Texas. Furthermore, Constellation will divest its minority interest in the Gregory Power Plant located near Corpus Christi, Texas.
Strategic Advantages of the Merger
This merger is poised to create the nation’s largest clean energy provider, leveraging Constellation’s extensive nuclear fleet alongside Calpine’s low-emission natural gas and geothermal assets. With this enhanced capacity, Constellation aims to meet the surging demand for reliable and clean energy, especially in high-demand markets like Texas, which is essential for ensuring energy security across the United States.
Profile of Constellation Energy Corporation
Headquartered in Baltimore, Constellation Energy is acclaimed as the nation’s top producer of reliable and emissions-free energy. The company’s diverse portfolio, which includes hydro, wind, and solar facilities, coupled with the largest nuclear fleet in the country, enables it to supply power to a wide array of customers including businesses, residential homes, and public sector entities. Constellation accounts for approximately 10% of the nation’s clean energy supply.
Profile of Calpine Corporation
Calpine Corporation, based in Houston, Texas, is recognized as the largest generator of electricity from natural gas and geothermal sources in the United States. With a substantial generating capacity of roughly 9,000 megawatts in ERCOT and 5,000 megawatts in PJM, Calpine plays a critical role in the energy landscape, making this acquisition particularly strategic for Constellation’s growth.
Conclusion
The finalization of Constellation’s acquisition of Calpine Corporation marks a pivotal moment for the energy sector. As Baltimore continues to showcase its entrepreneurial spirit, community members are encouraged to engage with local businesses and stay informed about developments that impact the economy. This merger not only strengthens the provider’s capacity to serve its customers but also signifies a commitment to a cleaner, more reliable energy future for the nation.
Frequently Asked Questions (FAQ)
What is the value of Constellation’s acquisition of Calpine Corporation?
The acquisition is valued at $26.6 billion, combining $16.4 billion in equity purchase price and the assumption of approximately $12.7 billion of Calpine’s net debt.
What are the conditions for the acquisition’s approval?
The acquisition is approved on the condition that Constellation divests six of Calpine’s generating assets to address competition concerns in the ERCOT and PJM Interconnection grids.
When is the acquisition expected to close?
The transaction is expected to close in the fourth quarter of 2025, subject to the completion of customary closing conditions.
What is Constellation Energy Corporation’s role in the energy sector?
Constellation is the nation’s largest producer of reliable, emissions-free energy, supplying power to businesses, homes, and public sector customers nationwide.
What is Calpine Corporation’s role in the energy sector?
Calpine is the largest generator of electricity from natural gas and geothermal sources in the United States, controlling approximately 9,000 megawatts of generating capacity in ERCOT and 5,000 megawatts in PJM.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Acquisition Value | $26.6 billion |
| Divested Assets | Six power plants in Pennsylvania, Delaware, and Texas |
| Expected Closing | Fourth quarter of 2025 |
| Constellation’s Role | Largest producer of reliable, emissions-free energy in the U.S. |
| Calpine’s Role | Largest generator of electricity from natural gas and geothermal sources in the U.S. |
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Author: STAFF HERE BALTIMORE WRITER
The BALTIMORE STAFF WRITER represents the experienced team at HEREBaltimore.com, your go-to source for actionable local news and information in Baltimore, Baltimore County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Baltimore Book Festival, Preakness Stakes, and Artscape. Our coverage extends to key organizations like the Baltimore Chamber of Commerce and Visit Baltimore, plus leading businesses in shipping and healthcare that power the local economy such as the Port of Baltimore and Johns Hopkins Medicine. As part of the broader HERE network, we provide comprehensive, credible insights into Maryland's dynamic landscape.
