Constellation to sell PJM generation assets to LS Power in Calpine deal remedy

Constellation Energy will sell a portfolio of PJM generation assets to LS Power for $5.0 billion as part of regulatory commitments tied to its acquisition of Calpine Corporation. The divestiture is intended to satisfy regulators and facilitate closing of the Calpine deal, shifting PJM generation ownership to LS Power and altering regional competitive dynamics. The transaction is material to the sector and will affect both companies' generation footprints and balance sheets.

Analysis

Constellation Energy will sell a portfolio of PJM generation assets to LS Power for $5.0 billion as part of regulatory commitments tied to its acquisition of Calpine Corporation. The divestiture is intended to satisfy regulators and facilitate closing of the Calpine deal, shifting PJM generation ownership to LS Power and altering regional competitive dynamics. The transaction is material to the sector and will affect both companies' generation footprints and balance sheets.