Constellation has secured regulatory clearance from the US Federal Energy Regulatory Commission (FERC) for its planned $16.4bn acquisition of Calpine.
This marks the latest regulatory endorsement following approvals by the New York State Public Service Commission and the Public Utility Commission of Texas.
The transaction, initially announced in January 2025, is anticipated to conclude in Q4 2025, pending approval from the Department of Justice and other standard closing conditions.
Constellation president and CEO Joe Dominguez said: “We appreciate FERC’s timely attention, review and approval of this transaction.
“As electricity demand accelerates, this combination gives us the ability to best serve the nation’s industries and communities with the clean, always-on power they need to grow and thrive.”
The acquisition will see Constellation purchase Calpine through a cash and stock transaction. The consideration is made up of 50 million shares of Constellation stock, $4.5bn in cash, and the assumption of around $12.7bn in Calpine’s net debt.
This merger aims to create the largest clean energy provider in the US, effectively combining Constellation’s zero-emissions nuclear fleet with Calpine’s low-emission natural gas and geothermal resources.
The combined entity will serve as a coast-to-coast platform capable of addressing the increasing demand for sustainable power round-the-clock.
It will have nearly 60GW of capacity from a diverse range of energy sources, including nuclear, natural gas, geothermal, and renewables. This will bolster Constellation’s capacity in burgeoning power markets like Texas and other strategic states such as California, New York, and Virginia.
Calpine’s infrastructure, particularly its low-emission natural gas plants, are expected to be crucial for maintaining grid reliability during customers’ transition to cleaner energy alternatives. Both companies are said to have been proactive in investing in carbon sequestration technology as part of efforts to ensure the continued role of natural gas in reliably powering consumers.
Furthermore, Constellation plans to expand its zero-emission energy offerings by investing in existing clean energy sources and exploring new nuclear projects while enhancing renewable energy output.
