Constellation Energy Corporation Sees 6.66% Rise Following FERC Approval of Calpine Acquisition

Constellation Energy Corporation (CEG) has gained 6.66% in the past week following FERC approval for its $16.4B acquisition of Calpine Corporation. The deal is expected to add $2B to CEG's free cash flow annually and create the largest low-emission power generation company with nearly 60GW of capacity.

Constellation Energy Corporation (CEG) has seen its stock price increase by 6.66% following the Federal Energy Regulatory Commission's (FERC) approval for its $16.4 billion acquisition of Calpine Corporation. The deal, expected to close in the fourth quarter of 2025, is a significant milestone in CEG's expansion strategy and is anticipated to add $2 billion to the company's free cash flow annually.

The acquisition will combine CEG's existing portfolio with Calpine's 27 GW of generation capacity, creating the largest low-emission power generation company in the U.S. with nearly 60 GW of capacity. This includes nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration, and battery storage assets. The combined company's footprint will significantly expand in Texas, the fastest-growing market for power demand, as well as in key strategic states like California, Delaware, New York, Pennsylvania, and Virginia [1].

FERC's approval represents the latest regulatory clearance for the transaction, following earlier approvals from the New York Public Service Commission and the Public Utility Commission of Texas. The deal remains subject to clearance by the Department of Justice and other customary closing conditions [2].

Constellation Energy's CEO, Joe Dominguez, expressed appreciation for FERC's timely attention and approval, stating that the combination will enable the company to better serve the nation's industries and communities with clean, always-on power. The company plans to invest in extending the life of existing clean energy sources, exploring new advanced nuclear projects, and increasing the output of existing nuclear plants [3].

Constellation's commitment to investing in nuclear energy in Pennsylvania is also notable. The company has asked the U.S. Nuclear Regulatory Commission to renew the operating license of the Peach Bottom Clean Energy Center until at least 2054 and plans to operate the Limerick Clean Energy Center well into the 2040s. The company is also working to secure customer commitments to increase its capacity by an additional 340 MW [3].

The acquisition of Calpine will further accelerate Constellation's investments, establishing a coast-to-coast platform capable of supporting growing demand for around-the-clock, sustainable power. This strategic move positions CEG as a leader in the transition to a cleaner, more reliable energy grid.

References:
[1] https://www.rigzone.com/news/constellation_receives_ferc_approval_for_calpine_acquisition-30-jul-2025-181309-article/?rss=true
[2] https://www.enerdata.net/publications/daily-energy-news/constellation-energy-secures-ferc-approval-us164bn-calpine-acquisition.html
[3] https://www.rigzone.com/news/constellation_receives_ferc_approval_for_calpine_acquisition-30-jul-2025-181309-article/