Constellation to sell PJM generation assets to LS Power for $5 billion in Calpine deal remedy

March 18 (Reuters) - Constellation Energy CEG.O said on Wednesday it would sell a portfolio of PJM generation assets to LS Power in a deal valued at $5 billion, as part of regulatory commitments tied to its acquisition of Calpine Corporation.

The deal represents an acquisition price of about $1,142/kW.

The sale covers about 4.4 gigawatts of natural gas-fired generation capacity in Delaware and Pennsylvania, including the Bethlehem, York 1, York 2, Hay Road and Edge Moor facilities.

Constellation said the PJM deal represents the largest portion of divestitures required by the U.S. Department of Justice and includes all assets that must be sold under a related Federal Energy Regulatory Commission order.

Late last year, the FERC approved Constellation's acquisition of Calpine, on the condition Calpine divests four of its generating assets in the Mid-Atlantic region.

The Calpine deal, announced in January 2025, is one of the biggest acquisitions in U.S. power industry, coming at a time of rising electricity demand, driven by the proliferation of energy-hungry AI data centers and the electrification of transportation and buildings.

Constellation expects to complete the remaining DOJ-related divestitures later this year.