BY Richard Summerfield
NRG Energy Inc. has agreed to sell six natural gas generation assets to New York-based independent power company LS Power, for a purchase price of $4bn in cash, subject to working capital and other closing adjustments.
The sale is expected to close in the second quarter of 2027, subject to customary closing conditions and regulatory approvals.
The six assets represent 4.9 GW of generation across the New York Independent System Operator (Ravenswood), ISO-New England (Ocean State Power and Wallingford) and Electric Reliability Council of Texas (ERCOT) (Jack County, Johnson County and R.W. Miller).
Proceeds from the transaction will be used to support NRG’s 2027 pro forma capital allocation plan of $3bn of share repurchases across 2026 and 2027, including an incremental $1bn expected to begin before the end of the fourth quarter of 2026. Upon closing of the asset sale, NRG plans an additional $2bn of debt reduction to maintain the company’s current leverage profile, bringing total planned 2027 debt reduction to $3bn. The remaining proceeds will be reserved to fund either contracted growth investments or additional debt reduction.
Upon completion of the deal with LS Power, NRG will own and operate 20 GW of generation capacity, including 10 GW of generation in the ERCOT territory. The company said that by 2028, another 1.1 GW is expected to be operational in ERCOT through the company’s remaining two Texas Energy Fund projects.
“We are unlocking substantial value from a select group of assets, while maintaining a robust generation footprint in PJM and ERCOT that provides reliable, affordable power for our customers,” said Robert Gaudette, president and chief executive of NRG. “This transaction will strengthen our balance sheet, support increased share repurchases and preserve flexibility to invest in growth opportunities with compelling returns. It demonstrates our commitment to disciplined capital allocation and creates long-term value for shareholders.”
“Significant investment in firm, dispatchable power remains essential to grid reliability, and facilities that are already built, permitted, and interconnected deliver that power today,” said Paul Segal, chief executive of LS Power. “Firm power underpins our all-of-the-above approach, including renewables and distributed energy resources. Expanding LS Power's generation footprint in the Texas, Northeast, and New York markets, where we have deep experience developing and operating a range of energy infrastructure assets, creates opportunities to support historic levels of power demand growth.”
According to LS Power, the acquisition from NRG, combined with the company’s pending acquisition of about 4.4 GW in generation capacity from Constellation, will expand the group’s gas-fired generation fleet from 2.2 GW to 11.5 GW. LS Power also owns a variety of renewable energy assets, including solar, wind, hydro and battery energy storage, in a portfolio that will now exceed 19 GW of capacity.
The $4bn deal is not the first time the two companies have done business together. In 2025, NRG acquired LS Power’s natural gas generation facilities and a commercial and industrial virtual power plant platform portfolio in a cash and common stock deal valued at approximately $12bn.
News: NRG Energy to sell six power plants to LS Power for $4 billion