LS Power to buy Brazos Valley Energy Center from Constellation

LS Power has reached a definitive statement to acquisition the Brazos Valley Energy Center, a 606MW earthy gas-fired combined-cycle installation successful Texas, US, from Constellation for $860m.

Previously known arsenic the Jack Fusco Energy Center, the installation is located adjacent Houston, wrong the Electric Reliability Council of Texas (ERCOT) powerfulness market.

The merchantability forms portion of regulatory commitments tied to Constellation's earlier acquisition of Calpine.

According to Constellation, the divestiture of the Brazos Valley Energy Center is the last plus required to beryllium sold nether these commitments.

Closing of the transaction is pending support from the US Department of Justice and different customary conditions. Both companies expect completing the woody by the extremity of the year.

LS Power CEO Paul Segal said: "Texas is experiencing exceptional economical maturation arsenic its pro-business policies proceed to pull companies, concern and jobs from crossed the country. That maturation is driving rapidly expanding request for electricity, portion caller procreation projects tin instrumentality years to make and bring online.

"Acquiring and optimising proven assets is 1 of the fastest and astir cost-effective ways to conscionable that need, and earthy state is well-positioned to supply the reliable, around-the-clock capableness the marketplace requires. This acquisition reflects our 'more of everything' attack and our committedness to delivering the affordable, reliable powerfulness needed to prolong Texas' growth."

The summation of the Brazos Valley works volition summation LS Power's procreation portfolio successful ERCOT. Following completion of this and different pending transactions, LS Power's nationalist operating fleet is expected to scope astir 14.1GW.

This latest woody follows an announcement successful March successful which LS Power agreed to get a 4.35GW portfolio of 5 gas-fired procreation assets successful the Pennsylvania-New Jersey-Maryland (PJM) marketplace from Constellation.

Legal advisers to LS Power connected the Brazos Valley acquisition were White & Case and Willkie Farr & Gallagher, with Houlihan Lokey and RBC Capital Markets providing fiscal advice.

Constellation separately reported that its mostly accepted accounting principles nett income for the 2nd 4th of 2026 declined to $1.42 per share, compared to $2.67 per stock successful the erstwhile year. Adjusted operating net for the 4th roseate to $2.55 per stock from $1.91 per share.

The institution besides signed an further 920MW of semipermanent atomic powerfulness acquisition agreements with assorted concern people customers, with these agreements acceptable to statesman betwixt 2029 and 2032. Among these, a 176MW woody with Walmart is expected to enactment enlargement astatine the Dresden Clean Energy Center successful Illinois.

"LS Power to bargain Brazos Valley Energy Center from Constellation" was primitively created and published by Power Technology, a GlobalData owned brand.