Constellation Reaches Resolution With U.S. Department of Justice for Calpine Transaction

Final regulatory clearance paves the way for closing, delivering benefits for customers and communities across America

BALTIMORE--(BUSINESS WIRE)-- Constellation (Nasdaq: CEG) today announced it has reached a resolution with the U.S. Department of Justice (DOJ) on the conditions required to complete the Calpine Corporation acquisition. This marks the final regulatory clearance needed to complete the transaction.

“We are very pleased to reach a settlement that allows us to bring together two magnificent companies to create a new Constellation with unprecedented scale, talent and capability to better serve our customers and communities while building the foundation for America’s next great era of growth and innovation,” said Joe Dominguez, president and CEO of Constellation. “We thank the Department for its professionalism and tireless work reviewing this transaction through these many months. It’s now time for us to complete the transaction, welcome our new colleagues from Calpine, and together begin our journey to light the way to a brilliant tomorrow for all.”

The Federal Energy Regulatory Commission approved the transaction conditioned on the divestiture of four of Calpine’s generating assets in the Mid-Atlantic region: Hay Road, Edge Moor, Bethlehem, and York 1.

As part of the DOJ resolution, the company also agreed to divest York 2, a 828-megawatt natural gas-fired, combined-cycle plant in Pennsylvania, as well as the Jack Fusco Energy Center, a 605-megawatt natural gas fired combined cycle facility located outside Houston, Texas, and a minority ownership interest in the Gregory Power Plant, a 385-megawatt natural gas fired combined cycle near Corpus Christi, Texas.

Since the announcement of this transaction in January, the market has increasingly recognized the critical importance of natural gas generation to meet the nation’s electricity demand driven by onshoring of manufacturing, enhanced electrification, and the growing data economy. As a consequence, the company expects a robust market for these assets and that it will receive attractive value for the sale further reinforcing the strategic rationale for the deal.

This approval represents the most recent and final regulatory approval in the transaction following earlier approvals by the Federal Energy Regulatory Commission, the New York Public Service Commission and the Public Utility Commission of Texas. The parties can begin closing the transaction once the court has signed the stipulation and order agreed to by the parties and DOJ.

About Constellation

Constellation Energy Corporation (Nasdaq: CEG), a Fortune 200 company headquartered in Baltimore, is the nation’s largest producer of reliable, emissions-free energy and a leading energy supplier to businesses, homes and public sector customers nationwide, including three-fourths of Fortune 100 companies. With annual output that is nearly 90% carbon-free, our hydro, wind and solar facilities paired with the nation’s largest nuclear fleet have the generating capacity to power the equivalent of 16 million homes, providing about 10% of the nation’s clean energy. We are committed to investing in innovative technologies to drive the transition to a reliable, sustainable and secure energy future. Follow Constellation on LinkedIn and X.

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Linsey Wisniewski

Constellation Communications

667-218-7700

linsey.wisniewski@constellation.com

Source: Constellation Energy Corporation