Constellation to Buy Calpine in Landmark Power Acquisition

January 10, 2025 TruthUSA

Constellation Energy, a nuclear energy company, has acquired the gas and geothermal Calpine Corporation in cash and stock for $16.4 billion.

At the expected closing date of what is being called one of the largest power industry acquisitions, Constellation said the net purchase price will be $26.6 billion on Friday.

“This acquisition will help us better serve our customers across America, from families to businesses and utilities,” said Constellation CEO Joe Dominguez. “By combining Constellation’s unmatched expertise in zero-emission nuclear energy with Calpine’s industry-leading, best-in-class, 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.”

Dominguez said both companies have led efforts toward more reliable, cleaner energy.

Constellation is headquartered in Baltimore, Maryland. Calpine is headquartered in Houston, Texas.

In September 2024, Microsoft entered into a 20-year power purchase with Constellation to reopen Pennsylvania’s closed Three Mile Island (TMI) nuclear power plant, which Constellation owns.

Constellation said it would restore the TMI Unit 1, adding approximately 835 megawatts to the electrical grid while creating 3,400 direct and indirect jobs and generating more than $3 billion in state and federal taxes.

To keep its commitment to carbon neutrality by 2030, Microsoft said it intended to rely more on nuclear power to support its AI data centers.

As smart technology progresses, these centers are expected to draw more from the power grid, creating a challenge for plants powering households and businesses.

Constellation said it will continue to invest in zero-emission energy “by extending the life of clean energy sources” and researching “advanced nuclear projects.”

Calpine CEO Andrew Novotny said the acquisition is “an incredible opportunity” for the country’s economy and a “cleaner, healthier and more sustainable future.”

“Together, we will be better positioned to bring accelerated investment in everything from zero-emission nuclear to battery storage that will power our economy in a way that puts people and our environment first,” Novotny said. “It’s a win for every American family and business in our newly combined footprint that wants clean and reliable energy.”

Constellation said that combined, Constellation and Calpine will have up to 60 gigawatts of capacity from zero- to low-emission sources, including wind and solar.

“The combined company’s footprint will span the continental U.S. and include a significantly expanded presence in Texas, the fastest growing market for power demand, as well as other key strategic states, including California, Delaware, New York, Pennsylvania and Virginia,” Constellation said.

Reuters contributed to this report.

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