LS Power has reached a definitive agreement to purchase the Brazos Valley Energy Center, a 606MW natural gas-fired combined-cycle facility in Texas, US, from Constellation for $860m.
Previously known as the Jack Fusco Energy Center, the facility is located near Houston, within the Electric Reliability Council of Texas (ERCOT) power market.
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The sale forms part of regulatory commitments tied to Constellation’s earlier acquisition of Calpine.
According to Constellation, the divestiture of the Brazos Valley Energy Center is the final asset required to be sold under these commitments.
Closing of the transaction is pending approval from the US Department of Justice and other customary conditions. Both companies anticipate completing the deal by the end of the year.
LS Power CEO Paul Segal said: “Texas is experiencing exceptional economic growth as its pro-business policies continue to attract companies, investment and jobs from across the country. That growth is driving rapidly increasing demand for electricity, while new generation projects can take years to develop and bring online.
“Acquiring and optimising proven assets is one of the fastest and most cost-effective ways to meet that need, and natural gas is well-positioned to provide the reliable, around-the-clock capacity the market requires. This acquisition reflects our ‘more of everything’ approach and our commitment to delivering the affordable, reliable power needed to sustain Texas’ growth.”
The addition of the Brazos Valley plant will increase LS Power’s generation portfolio in ERCOT. Following completion of this and other pending transactions, LS Power’s national operating fleet is expected to reach around 14.1GW.
This latest deal follows an announcement in March in which LS Power agreed to acquire a 4.35GW portfolio of five gas-fired generation assets in the Pennsylvania-New Jersey-Maryland (PJM) market from Constellation.
Legal advisers to LS Power on the Brazos Valley acquisition were White & Case and Willkie Farr & Gallagher, with Houlihan Lokey and RBC Capital Markets providing financial advice.
Constellation separately reported that its generally accepted accounting principles net income for the second quarter of 2026 declined to $1.42 per share, compared to $2.67 per share in the previous year. Adjusted operating earnings for the quarter rose to $2.55 per share from $1.91 per share.
The company also signed an additional 920MW of long-term nuclear power purchase agreements with various investment grade customers, with these agreements set to begin between 2029 and 2032. Among these, a 176MW deal with Walmart is expected to support expansion at the Dresden Clean Energy Center in Illinois.
