NRG Energy received regulatory approval from the Federal Energy Regulatory Commission and the New York State Public Service Commission for its planned acquisition of LS Power’s portfolio of natural‑gas generation assets and a commercial‑industrial virtual power plant. The approval removes a key regulatory hurdle and brings the transaction one step closer to closing, expected in the first quarter of 2026.
The deal, valued at approximately $12 billion, will add roughly 13 GW of natural‑gas generation capacity and a 6 GW commercial‑industrial virtual power plant platform to NRG’s portfolio. The addition is projected to double the company’s owned generation fleet and strengthen its position in competitive markets such as ERCOT and PJM, where demand for flexible, dispatchable power is accelerating.
NRG’s strategy is to capitalize on a “power demand supercycle” driven by growth in data centers and industrial customers. The acquisition of LS Power’s assets provides the company with quick‑start natural‑gas plants and a scalable VPP platform, enabling NRG to deliver reliable, dispatchable energy to high‑value customers and to capture new revenue streams from grid services.
Financially, the transaction is expected to be immediately accretive to NRG’s adjusted earnings per share. In line with this, the company has raised its long‑term adjusted EPS compound annual growth rate target to at least 14%, up from 10%. NRG is also pursuing deleveraging, targeting its desired leverage ratio within 24 to 36 months after closing.
Larry Coben, NRG’s chair, president, and CEO, said the acquisition “transforms our generation fleet, enhances our ability to serve customers, and drives long‑term value for our shareholders.” He added that the company is in the early stages of a power demand supercycle and is excited to lead with reliable energy solutions.
Analysts have highlighted the deal’s strategic fit and financial benefits, noting that the acquisition will strengthen NRG’s growth trajectory and support its commitment to returning approximately $9.1 billion to shareholders through share repurchases and dividends over the next five years.
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