Constellation Defends Calpine Acquisition Amid Consumer Concerns

Constellation Energy, a leading US energy provider, has defended its proposed acquisition of Calpine, a deal valued at $16.4 billion, amidst opposition from consumer groups in Maryland and Pennsylvania. The Federal Energy Regulatory Commission (FERC) is evaluating the companies' request for approval. Critics argue that the merger could result in reduced competition and higher energy costs, with Constellation's market share potentially increasing from 32% to 40%. The Maryland Office of Peoples Counsel and Pennsylvania consumer advocates have voiced concerns over potential anticompetitive behavior and supply withholding. Environmental groups have also urged FERC to reject the deal. Constellation counters that the acquisition adheres to regulatory standards, arguing that it lacks incentives for supply manipulation and ensuring power generation commitments are met. The transaction is expected to be finalized by January 2026, pending regulatory and customary closing conditions. This acquisition occurs as the US experiences growing energy demands from AI and data centers.