LS Power has entered into a definitive agreement to acquire the Brazos Valley Energy Center, a 606-megawatt natural gas-fired combined-cycle facility located outside Houston, Texas, from Constellation, the companies announced on August 6, 2026. The transaction is expected to close in the fourth quarter of 2026, pending regulatory approval.

A Divestiture Tied to Constellation's Calpine Acquisition

The deal is not a standard market transaction. According to the announcement, the acquisition satisfies a regulatory divestiture commitment connected to Constellation's acquisition of Calpine. LS Power noted that it has had several bilateral transactions with Calpine to date, positioning the firm as a natural counterparty for the divestiture.

The Brazos Valley Energy Center, formerly known as the Jack Fusco Energy Center, is a combined-cycle plant capable of generating electricity around the clock. Combined-cycle technology is among the most efficient configurations for natural gas generation, using both gas and steam turbines to extract maximum output from fuel burned in the generation process.

This acquisition follows another significant bilateral agreement between LS Power and Constellation announced earlier in March of this year. In that deal, LS Power agreed to acquire a 4,353-megawatt portfolio of five gas-fired generation assets located in the PJM interconnection region, a separate and distinct market from ERCOT.

The two transactions together illustrate an ongoing commercial relationship between the firms as Constellation works through the regulatory conditions attached to its Calpine purchase.

Expanding Footprint in a Fast-Growing Texas Market

The Brazos Valley acquisition adds to LS Power's existing generation presence within the Electric Reliability Council of Texas, the grid operator serving most of the state.

ERCOT has emerged as one of the most closely watched power markets in the United States, driven by population growth, industrial expansion and an accelerating wave of electricity-intensive development including data centers and artificial intelligence infrastructure.

Paul Segal, CEO of LS Power, pointed to Texas's business climate as a key driver of surging electricity demand. "Texas is experiencing exceptional economic growth as its pro-business policies continue to attract companies, investment, and jobs from across the country," Segal said in the announcement. "That growth is driving rapidly increasing demand for electricity, while new generation projects can take years to develop and bring online."

Segal described the strategy of acquiring existing, operational assets as among the fastest and most cost-effective methods to respond to that demand surge.

"Acquiring and optimizing 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," he said.

Fleet Size Set to Reach Roughly 14,100 MW

Upon the closing of its pending transactions with Constellation, LS Power's national operating fleet will total approximately 14,100 megawatts, according to the company.

That figure encompasses the PJM portfolio announced in March as well as the Brazos Valley Energy Center, assuming both transactions receive the necessary regulatory clearances and close on schedule.

LS Power described its investment philosophy in the release as a "more of everything" approach, referencing a broad strategy that spans natural gas generation, renewable energy, battery storage and transmission infrastructure. The company said it continues to advance a pipeline of capacity uprates a,t existing facilities alongside new greenfield projects across the United States.

Founded in 1990, LS Power has developed or acquired 50,000 megawatts of power generation since its inception, spanning utility-scale solar, wind, hydro, battery energy storage and natural gas-fired facilities. Through its transmission business, LS Power Grid, the company operates s,even transmission utilities and has built more than 780 miles of high-voltage transmission lines, with an additional 400-plus miles currently in construction or active development.

Advisory Teams on the Transaction

LS Power was advised by two law firms and two financial institutions on the acquisition. White & Case LLP and Willkie Farr & Gallagher LLP served as legal advisors, while Houlihan Lokey and RBC Capital Markets served as financial advisors to LS Power. No advisors were listed for Constellation in the release.

Natural Gas Positioned as Bridge for Surging Demand

The transaction reflects broader trends playing out across wholesale power markets, where generators and infrastructure investors are betting on natural gas to fill reliability gaps that intermittent renewable sources cannot address on their own.

Data center development, electrification of transportation and heating, and the energy demands of artificial intelligence workloads have all contributed to upward pressure on electricity consumption projections in markets like ERCOT.

LS Power's rationale for the deal centers on the speed advantage of acquiring an operating asset versus building new capacity from scratch. Greenfield development of a power plant of comparable scale would require years of permitting, financing, construction and commissioning work before delivering a single megawatt to the grid. An operational facility like Brazos Valley can be integrated into LS Power's fleet and optimized relatively quickly after closing.

The company's broader infrastructure portfolio extends beyond power generation. LS Power has invested in electric vehicle charging, demand response programs, microgrids, renewable fuels and waste-to-energy platforms, according to the company's background materials. Over its history, the firm, has raised more than USD 85 billion in debt and equity capital to support North American energy infrastructure development.

The transaction remains subject to regulatory approval, with closing targeted for the fourth quarter of 2026.

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