CPP Investments sells stake in in US power producer

CPP Investments has announced the sale of its entire 15.75 percent stake in US power producer Calpine Corporation to Constellation Energy.  

The transaction forms part of Constellation’s acquisition of Calpine. Net proceeds for CPP Investments are expected to total approximately US$700m in cash and US$1.9bn in Constellation stock. 

The stake was acquired in 2018 through a co-investment with Energy Capital Partners and Access Industries.  

Bill Rogers, managing director and head of Sustainable Energies at CPP Investments, said, “We are pleased by the success of our investment in Calpine and view this transaction as an excellent opportunity to realize strong returns for the CPP Fund.”  

Rogers also highlighted CPP Investments' enthusiasm for Constellation's future growth, driven by the expanded scale and cash flow resulting from the acquisition. 

The combined company will operate across the continental US, with a significant expansion in Texas, which is the fastest-growing power market.  

The acquisition will also bolster its presence in strategic markets, including California, Delaware, New York, Pennsylvania, and Virginia. 

“Calpine serves as a good example of CPP Investments’ approach to investing across the energy spectrum, which is to invest in companies that play a critical role in delivering affordable, reliable power while helping them progress towards the decarbonisation of their portfolios,” Rogers added. 

The transaction is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals.  

These include approvals from the Federal Energy Regulatory Commission, the Department of Justice, the New York Public Service Commission, the Public Utility Commission of Texas, and other agencies.