DOJ Forces Constellation to Sell Plants for Calpine Deal
Published Date: 12/18/2025
Notice
Summary
The U.S. government is stepping in to stop Constellation Energy from buying Calpine Corporation without making some big changes. To keep things fair, Constellation must sell off several power plants in Texas, Pennsylvania, and Delaware. People have 60 days to share their thoughts before the deal moves forward, making sure competition stays strong and prices stay fair.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Forced sale of named power plants
The proposed Final Judgment requires Constellation to sell specific Calpine power plants to preserve competition. The plants listed for divestiture include Jack A. Fusco Energy Center (Richmond, TX) and Calpine's minority interest in the Gregory Power Plant (Gregory, TX) in ERCOT, and Bethlehem Energy Center (Bethlehem, PA), Edge Moor Energy Center (Wilmington, DE), Hay Road Energy Center (Wilmington, DE), and York 1 and York 2 Energy Centers (Delta/York area, PA) in PJM; this remedy was filed with the Court on December 5, 2025.
Acquisition could raise energy bills
The Complaint alleges Constellation's planned $26.6 billion acquisition of Calpine would likely let the combined firm withhold output and raise wholesale electricity prices, causing increased energy costs of more than $100 million per year for consumers and businesses in Texas and parts of the mid-Atlantic (including southeastern Pennsylvania, New Jersey, Delaware, and the eastern shores of Maryland and Virginia). Plaintiffs filed the Complaint on December 5, 2025 to prevent that outcome.
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