Constellation Energy has secured approval from the New York State Public Service Commission (PSC) for its acquisition of Calpine Corporation.
The approval further advances the transaction which will see the merger of Constellation’s zero-emissions nuclear assets and Calpine’s low-emission natural gas and geothermal resources.
The combined entity, with nearly 60GW of generation capacity, will become one of the leading providers of clean energy in the US.
Constellation president and CEO Joe Dominguez said: “The transaction will unite two diverse generation portfolios to create the leading reliable and clean generation fleet to help the US win the AI race while meeting the growing needs of families, communities and businesses coast to coast.
“Today’s approval brings us one step closer to making this critical vision a reality and helps us bring together two world-class teams with a strong commitment to operational excellence, sustainability and supporting our communities.”
In January 2025, Constellation signed a definitive agreement to acquire Calpine through a cash-and-stock transaction valued at approximately $16.4bn. The agreement includes 50 million shares of Constellation stock, $4.5bn in cash, and the assumption of $12.7bn in Calpine’s net debt.
After considering Calpine’s cash flow and tax attributes, the transaction valued the company at $26.6bn.
Earlier in the month, the acquisition received clearance from the Texas Public Utilities Commission.
The transaction, anticipated to close in the fourth quarter of 2025, still requires approval from the Federal Energy Regulatory Commission and the Department of Justice, along with other standard closing conditions.
