LS Power Buys Texas Gas Plant from Constellation

LS Power is significantly expanding its footprint in the rapidly growing Texas energy market by acquiring the Brazos Valley Energy Center, a 606-megawatt natural gas combined-cycle facility. This strategic move from Constellation positions LS Power to address the escalating electricity demand fueled by burgeoning industries like artificial intelligence and data centers, alongside broader electrification trends across the state.

The acquisition underscores LS Power's proactive strategy to secure reliable, dispatchable power generation capacity. According to Paul Segal, CEO of LS Power, the company's approach involves acquiring and optimizing established assets as a swift and economical method to meet Texas's surging power needs. "Natural gas is well-positioned to provide the reliable, around-the-clock capacity the market requires," Segal stated, highlighting the critical role of such facilities in sustaining economic expansion.

This transaction is part of a larger regulatory commitment stemming from Constellation's earlier acquisition of Calpine. LS Power has demonstrated its capacity for navigating complex energy sector deals, evidenced by a prior agreement this year to purchase a substantial 4,353 MW portfolio of five gas-fired plants from Constellation within the PJM market. These repeated transactions highlight LS Power's established reputation as a dependable partner capable of executing deals with both speed and precision.

The addition of the Brazos Valley Energy Center will bolster LS Power's operational fleet within ERCOT, Texas's independent power grid, which is experiencing some of the most aggressive growth nationwide. Upon the completion of all pending transactions with Constellation, LS Power's total national generation capacity is projected to reach approximately 14,100 MW, solidifying its status as a major player in North American energy infrastructure.

With extensive experience in developing, acquiring, and operating energy assets, including power generation and transmission infrastructure in Texas, LS Power is well-equipped to integrate the new facility. The company is also actively pursuing a robust pipeline of projects, including enhancements to existing plants and new greenfield developments across the United States, reflecting a comprehensive strategy for future energy needs.

The deal, which is subject to customary regulatory approvals, is anticipated to finalize in the fourth quarter of 2026. White & Case LLP and Willkie Farr & Gallagher LLP provided legal counsel, while Houlihan Lokey and RBC Capital Markets served as financial advisors to LS Power for this significant acquisition.