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Constellation Energy to Acquire Calpine in $16.4B Deal, Plans Texas Peak Facility

Constellation Energy's acquisition of Calpine will significantly expand its power generation and distribution. The new Texas peaking facility will help meet demand during peak hours.

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Constellation Energy to Acquire Calpine in $16.4B Deal, Plans Texas Peak Facility

Constellation Energy Group is set to acquire Calpine, a privately held utility, in a deal valued at approximately $16.4 billion. The acquisition, expected to close this quarter, is subject to regulatory approval. Meanwhile, Calpine is planning a new 460-megawatt peaking facility in Austin, Texas, with support from the Texas Energy Fund.

The new facility, adjacent to Calpine's Freestone Energy Center, will operate only during peak demand times. It is expected to be operational by 2026, with construction already underway. This project is one of many power resource developments supported by the Texas Energy Fund, a state initiative.

Constellation Energy Group's stock price rose by more than 2% on Tuesday, outperforming the S&P 500 index's 0.3% rise. This increase comes after Blackstone acquired Calpine's assets from Constellation Energy Group in spring 2021, with the transition expected to complete soon.

The acquisition of Calpine by Constellation Energy Group, along with the planned peaking facility in Austin, Texas, signals a significant expansion in power generation and distribution. Upon regulatory approval and completion of the acquisition, Constellation Energy Group will own and operate Calpine's extensive power plant portfolio, further solidifying its position in the energy sector.

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