#United States #Texas #Houston #LS Power #Brazos Valley Energy Center

LS Power Expands its Energy Portfolio

In a significant development for the North American energy sector, LS Power has made a definitive agreement with Constellation to acquire the Brazos Valley Energy Center, a substantial 606-megawatt natural gas-fired combined-cycle facility situated near Houston, Texas. This acquisition comes at a pivotal moment as Texas witnesses unparalleled economic growth, which intensifies the demand for reliable electricity.

According to Paul Segal, CEO of LS Power, Texas's pro-business atmosphere continues to attract companies and investments. As this economic boom transforms the landscape, electricity demand soars, while the development of new generation projects takes substantial time and resources. "Acquiring proven assets is one of the fastest and most cost-effective methods to meet this escalating demand," Segal emphasized, noting that natural gas is ideally positioned to deliver the reliable capacity the market needs.

The transaction fulfills a regulatory divestiture condition associated with Constellation's earlier acquisition of Calpine, establishing LS Power as a formidable ally in the energy sector. Earlier this year, LS Power successfully negotiated the purchase of a portfolio comprising 4,353 MW of gas-fired generation assets from Constellation, underscoring its role as a reliable and industrious partner in the market.

This acquisition significantly enhances LS Power's generation fleet within the Electric Reliability Council of Texas (ERCOT), recognized as one of the country's fastest-growing power markets. Upon the completion of its ongoing transactions with Constellation, LS Power's national operating fleet is set to exceed approximately 14,100 MW, reinforcing its position as a leader in energy generation.

LS Power's robust operational experience will be pivotal in integrating the Brazos Valley Energy Center into its existing infrastructure. The firm has a proven track record in developing, acquiring, and operating energy assets across Texas and the broader nation. In addition to this acquisition, LS Power is actively progressing a series of uprates at current facilities and exploring greenfield projects across the United States.

The closing of this transaction is anticipated in the fourth quarter of 2026, pending regulatory approvals. In preparation for this move, LS Power has enlisted legal and financial advisories from White & Case LLP and Willkie Farr & Gallagher LLP, while Houlihan Lokey and RBC Capital Markets will assist as financial advisors.

Founded in 1990, LS Power stands out as a premier player in the North American power and energy infrastructure landscape, having developed or acquired an impressive 50,000 MW of power generation capacity, including a diverse mix of energy sources. With its commitment to maintaining and expanding energy solutions, LS Power is not only a leader in traditional power generation but also invests in evolving technologies such as electric vehicle charging and renewable energy platforms. Over the years, LS Power has successfully raised more than $85 billion in capital to support its infrastructure initiatives.

As energy demands continue to rise, strategic acquisitions such as this can provide robust solutions, enabling LS Power to further its mission of delivering affordable and reliable power necessary for Texas's ongoing growth and prosperity.

For more information about LS Power, please visit www.lspower.com.