Constellation Energy Corporation closed its acquisition of Calpine Corporation on January 7, 2026, a transaction valued at approximately $26.6 billion, including cash, stock, and the assumption of $12.7 billion of Calpine’s net debt. The deal was structured as a $4.5 billion cash payment and the issuance of 50 million Constellation shares to Calpine shareholders, giving Constellation a 70% ownership stake in the combined company.
The combined entity will operate roughly 55 GW of generation capacity, comprising 21 GW of Constellation’s nuclear fleet and 27 GW of Calpine’s natural‑gas and geothermal assets. The 27 GW of Calpine capacity includes the Geysers geothermal complex in California, the largest geothermal field in the world, and a portfolio of 79 power plants that provide baseload and peaking power across the United States.
Regulatory approval was secured from the Federal Energy Regulatory Commission, the U.S. Department of Justice, and several state energy commissions. To address market‑power concerns, Constellation agreed to divest six plants in Texas, Delaware, and Pennsylvania, a move that satisfied the DOJ’s conditions and cleared the way for the merger.
Strategically, the deal gives Constellation a “hybrid advantage” that blends nuclear baseload with natural‑gas peaking, positioning the company as the nation’s leading competitive retail electric supplier. The combined company will serve about 2.5 million customers, including a growing base of data‑center and AI‑driven businesses that demand reliable, low‑carbon power.
In the announcement, Constellation President and CEO Joe Dominguez said, “By combining Constellation’s unmatched expertise in zero‑emission nuclear energy with Calpine’s industry‑leading, low‑carbon natural‑gas and geothermal generation fleets, we will be able to offer the broadest array of energy products and services available in the industry.” Calpine President and CEO Andrew Novotny added, “Our expanded capabilities will allow us to better serve customers and communities, enabling investment in critical infrastructure and supporting national priorities for energy security, economic competitiveness and technological leadership.” Constellation also promoted Shane Smith to Executive Vice President and Chief Financial Officer, reflecting the company’s focus on integrating the new assets.
Analysts noted a positive market reaction, citing the creation of the largest U.S. power producer and the strategic advantage of combining nuclear baseload with natural‑gas peaking. The deal is expected to accelerate Constellation’s growth in high‑demand markets such as Texas and California, while providing a platform for future investments in advanced nuclear, geothermal, carbon capture, and long‑duration storage.
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