This approval advances the deal that will double NRG's energy generation capacity and significantly enhance its virtual power plant (VPP) offerings, positioning the company for a period of surging energy demand.
NRG Energy, Inc. announced a significant step forward in its planned acquisition of a portfolio of natural gas generation facilities and a commercial and industrial (C&I) virtual power plant platform from LS Power, confirming it has secured approvals from both the Federal Energy Regulatory Commission (FERC) and the New York State Public Service Commission (NYSPSC).
The roughly $12 billion enterprise value transaction, initially announced in May 2025, is considered transformative for NRG. The acquired assets include approximately 13 gigawatts (GW) of modern, flexible natural gas-fired power plants across 18 facilities in nine states, along with CPower, LS Power's leading C&I VPP platform, which manages about 6 GW of flexible capacity from over 2,000 commercial and industrial customers.
The transaction’s enterprise value is composed of $6.4 billion in cash, $2.8 billion in NRG common stock, and the assumption of $3.2 billion in net debt. Upon closing, LS Power is expected to own approximately 11% of the pro forma NRG outstanding shares.
These additions are set to dramatically reshape NRG's footprint and capabilities. The inclusion of the 13 GW of generation is expected to double NRG’s total generating capacity to roughly 25 GW, establishing the company as a dominant force in key markets, particularly in the Northeast and Texas. The strategic placement of these quick-start facilities is designed to optimize NRG's ability to serve rapidly growing customer demand and enhance its risk management capabilities.
The acquisition of the C&I VPP platform, which brings NRG’s total VPP capacity to an estimated 8 GW, is equally significant. This technology enables NRG to offer more innovative and customized energy solutions to both large commercial customers and families, leveraging demand-side management to support grid reliability during periods of peak demand. This integrated supply strategy, combining physical generation with demand-side solutions, is critical as the U.S. power market enters what NRG calls a "power demand supercycle," driven largely by electrification and the massive energy needs of data centers.
"These approvals mark a key milestone in advancing an acquisition that will double NRG’s generation capacity and expand our C&I VPP platform," the company stated. "At close, the transaction will expand NRG’s ability to deliver innovative, customized energy solutions to both large customers and families."
The completion of the acquisition is targeted for the first quarter of 2026. While the FERC and NYSPSC approvals address key regulatory hurdles in the energy sector, the transaction remains subject to customary closing conditions, most notably regulatory approval under the Hart-Scott-Rodino (HSR) Act.
