NRG Energy recently unveiled an agreement to purchase LS Power’s portfolio of natural gas power plants, a transaction estimated at approximately $12 billion, encompassing debt. This acquisition significantly broadens NRG’s operational presence in Texas and along the East Coast.

The deal will add 18 natural gas-fired power plants across nine states to NRG’s holdings. Notably, Pennsylvania will see five new facilities, and Ohio will gain one. This expansion is expected to substantially increase NRG’s total generation capacity, bringing it to roughly 25 gigawatts (GW), effectively doubling its current output.

A key aspect of the acquisition involves a notable increase in NRG’s capacity within the PJM Interconnection, rising from 2.1 GW to 9.5 GW. NRG maintains that this expansion will not grant the company disproportionate influence over the PJM grid, emphasizing that it represents roughly 10% of the region’s average daily electricity generation, far from a monopolistic position.