US energy provider Constellation Energy has defended its proposed acquisition of Calpine before regulators, following protests from consumer groups.
The Federal Energy Regulatory Commission (FERC) was asked by the companies involved to approve the transaction, which has since faced opposition from consumer advocate groups in the states of Maryland and Pennsylvania.
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The $16.4bn deal, announced in January 2025, would position Constellation as the largest independent power company in the US.
However, concerns have been raised that the merger could reduce competition and lead to higher power bills, as reported by Reuters.
The Maryland Office of People’s Counsel, in its protest to FERC, expressed concerns that the merger could lead to anticompetitive conduct, such as withholding supply
This sentiment was mirrored by the consumer advocate for Pennsylvania, highlighting that Constellation’s market share in competitive retail supplies would increase from 32% to almost 40% post-merger.
Environmental groups, including Earthjustice, have also intervened, requesting that FERC deny the acquisition application.
In response, Constellation has stated in its regulatory filing that the acquisition is not anticompetitive and meets FERC’s criteria for approval.
Constellation has requested that FERC dismiss the protests and given assurances that there are adequate safeguards to prevent supply withholding and that it has no financial incentive to engage in such practices.
Constellation stated in its filing with FERC: “Constellation applicants have both a legally binding obligation and an economic incentive to bid and sell their power generation.”
The transaction is expected to close by January 2026, based on regulatory approvals and the completion of customary closing conditions.
In a related development, the US is exploring alternatives to multibillion-dollar capacity auctions amid surging demand from AI and data centres.
