Attorney General Paxton’s settlement requires Constellation Energy Corporation, Inc. (“Constellation”) and Calpine Corporation (“Calpine”) to divest two electricity-generating plants in Texas before moving forward with their proposed $26.6 billion merger. Constellation and Calpine are two of the largest electricity generators in Texas, and together they supply a significant share of wholesale electricity to the electricity grid operated by Electric Reliability Council of Texas (“ERCOT”), which supplies electricity to more than 27 million Texans.  

The Office of the Attorney General found that without intervention, the merger would have given Constellation the ability to withhold output and raise prices on wholesale electricity. This price hike could have been as much as $100 million annually, which would have ultimately fallen on Texas families and businesses.  

“My responsibility is to protect Texans from any arrangement that threatens to raise prices, especially in our electric grid, which millions of Texans depend on every single day,” Attorney General Paxton said. “This settlement means lower prices for Texans and helps ensure that no company can exploit its market position at the expense of our citizens.” 

Attorney General Paxton is committed to working with President Trump to ensure affordability, reliability, and transparency in the Texas electricity market.