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LS Power to buy 606-MW Texas gas plant from Constellation
The acquisition of the Brazos Valley Energy Center is expected to close in the fourth quarter, pending regulatory approval.
LS Power, a New York-headquartered investor and operator in North American power and energy infrastructure, has entered a definitive agreement to acquire the Brazos Valley Energy Center near Houston from Constellation.
The plant is a 606-MW combined-cycle natural gas facility, and the transaction is expected to close in the fourth quarter of this year, subject to regulatory approval. LS Power said it views the deal as a way to add proven capacity more quickly than new generation projects, which can take years to develop and come online.
The company said the purchase satisfies a regulatory divestiture commitment tied to Constellation’s acquisition of Calpine. That divestiture requirement stems from concerns raised by the U.S. Department of Justice Antitrust Division and the Texas attorney general related to Constellation’s Calpine deal.
LS Power also noted it previously said in March it would acquire a 4,353 MW portfolio of five gas-fired generation assets in PJM from Constellation, as part of its series of bilateral transactions with Constellation.
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