LS Power has agreed to acquire the 606-megawatt Brazos Valley Energy Center from Constellation, expanding its generation portfolio in Texas as electricity demand increases from economic growth, AI, data centers, and electrification.
The natural gas-fired combined-cycle facility is located outside Houston and was previously known as the Jack Fusco Energy Center.
The transaction is tied to a regulatory divestiture commitment associated with Constellation’s acquisition of Calpine.
It follows another agreement announced in March under which LS Power plans to acquire a 4,353 MW portfolio of five gas-fired generation assets in the PJM market from Constellation.
Once LS Power closes its pending transactions with Constellation, its national operating generation fleet is expected to total approximately 14,100 MW.
LS Power sees acquiring and optimizing existing generation assets as a relatively fast way to add reliable power in markets where developing new generation can take years.
The company is pursuing what it describes as a “more of everything” strategy that includes natural gas alongside renewables, storage, transmission, and other power infrastructure.
LS Power also continues to advance capacity increases at existing facilities and greenfield development projects throughout the U.S.
The Brazos Valley acquisition is expected to close in the fourth quarter of 2026, subject to regulatory approval.
White & Case and Willkie Farr & Gallagher are serving as legal advisors, while Houlihan Lokey and RBC Capital Markets are financial advisors to LS Power.
KEY QUOTES:
“That growth is driving rapidly increasing demand for electricity, while new generation projects can take years to develop and bring online. 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.”
Paul Segal, CEO of LS Power
