Shares of Constellation Energy Corporation (NASDAQ: CEG) fell sharply on Wednesday, with the stock plunging 5.49% to $279.54, a loss of $16.25, as selling pressure intensified during the session. The decline came even as the company completed the sale of its Brazos Valley Energy Center to LS Power, a transaction that advances the regulatory commitments Constellation took on through its $16.4 billion acquisition of Calpine earlier this year.

Constellation Completes 606 MW Power Plant Sale

Constellation confirmed the transfer of the 606-megawatt Brazos Valley Energy Center to LS Power on October 14, 2026. The natural gas-fired facility operates outside Houston, Texas, within the Electric Reliability Council of Texas (ERCOT) market, the grid that manages electricity for most of the state. The closing marks another step toward meeting the federal antitrust requirements tied to the company's expansion.

Constellation initially agreed to sell the facility in August 2026, disclosing the agreement alongside its second-quarter results. The completed transaction reduces the company's generation holdings in Texas while fulfilling part of its regulatory obligations. Constellation did not disclose the final sale price in its announcement.

The company acquired Calpine on January 7, 2026, significantly expanding its electricity generation and competitive retail operations. The combination created the world's largest private-sector power producer and strengthened Constellation's presence across major electricity markets. Federal regulators required several asset sales to address the competition concerns arising from the combination.

Constellation Advances $5 Billion Asset Sale to LS Power

Beyond the Brazos Valley transaction, Constellation plans to sell approximately 4.4 gigawatts of generation capacity to LS Power under a proposed $5 billion agreement. The portfolio consists predominantly of natural gas-fired facilities across Delaware and Pennsylvania, including the Bethlehem, York 1, York 2, Hay Road, and Edge Moor power plants.

The transaction represents the largest portion of the divestitures required under Constellation's agreement with the Department of Justice. It also includes all generation facilities covered by the Federal Energy Regulatory Commission's divestiture requirements. The agreed valuation equals approximately $1,142 per kilowatt before closing adjustments.

Constellation expects to complete the PJM asset sale before the end of 2026, subject to regulatory approvals. LS Power, meanwhile, plans to strengthen its generation portfolio in a market experiencing growing electricity demand. The acquisition would expand its ownership of dispatchable power facilities serving businesses and households across the region.

Regulatory Commitments Shape Constellation's Expansion

The Department of Justice reached an agreement with Constellation in December 2025 to address competition concerns surrounding Calpine. Earlier, federal energy regulators approved the acquisition in July 2025, with conditions requiring certain PJM asset sales. Together, these agreements established the divestiture framework governing Constellation's integration of Calpine's operations and created overlapping disposal obligations for the combined company.

Constellation has also identified the 606-megawatt Jack Fusco Energy Center near Houston among its remaining divestiture obligations. Separately, the company previously divested its minority ownership interest in the 385-megawatt Gregory Power Plant near Corpus Christi, a transaction that involved a stake rather than the plant itself. These moves form part of the broader restructuring of its generation portfolio following the acquisition.

The completed Brazos Valley sale moves Constellation further through the required asset disposals despite Wednesday's sharp share decline. The proposed PJM transaction remains a central component of the company's regulatory compliance process. As it works through the remaining divestitures, Constellation continues to integrate Calpine's operations into a combined generation and retail platform that spans many of the country's major electricity markets.