Pull to refresh
Logo
What Changed
Following Why Sign Up
LS Power buys back 4.9 GW of gas plants from NRG for $4 billion

LS Power buys back 4.9 GW of gas plants from NRG for $4 billion

Money Moves

Six plants return to their former owner less than a year after NRG bought them, as demand for firm power rises.

Yesterday: LS Power agrees to buy six plants back

Overview

Updated 1 hour ago

LS Power agreed to pay $4 billion in cash for six natural gas plants that NRG Energy bought from it less than a year earlier. The plants total 4.9 gigawatts across Texas, New York, Rhode Island and Connecticut.

The round trip shows what existing gas plants are worth now. They are already built, permitted and connected to the grid, and electricity demand is climbing.

Why it matters

Investors are paying a premium for gas plants that can run on demand, a sign of how much firm power is now worth.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

$4B
Purchase price
Cash price for six plants, subject to working capital and closing adjustments.
4.9 GW
Generation capacity sold
Spread across ERCOT, NYISO and ISO New England.
8.0x
Implied 2027 EV/EBITDA multiple
NRG called the valuation too attractive to pass up.
11.5 GW
LS Power gas fleet after deals
Up from 2.2 GW, including a pending 4.4 GW purchase from Constellation.
20 GW
NRG capacity after sale
Split evenly between ERCOT and PJM.

Voices

Curated perspectives — historical figures and your fellow readers.

Sign up to generate historical perspectives on this story.

Log in Sign Up

People Involved

PS
Paul Segal
Chief Executive Officer, LS Power
Leading the acquisition
RG
Robert Gaudette
President and Chief Executive Officer, NRG Energy
Selling the plants

Organizations Involved

LS Power
LS Power
Energy developer and owner
Buyer

New York-based company that develops, invests in and operates power generation and transmission.
NRG Energy
NRG Energy
Power generation company
Seller

Houston-based power company with generation in ERCOT and PJM.

Timeline

May 2025 November 2026

3 events Latest: Yesterday

  1. LS Power agrees to buy six plants back

    Latest Deal

    The $4 billion cash deal covers 4.9 GW in Texas, New York, Rhode Island and Connecticut.

  2. NRG closes the $12 billion acquisition

    Deal

    The plants, including the Wallingford Energy facility in Connecticut, change hands.

  3. NRG agrees to buy 18 LS Power plants

    Deal

    The roughly $12 billion pact gives NRG gas generation across ERCOT, PJM, NYISO and ISO New England.

Scenarios

1

Deal closes in the second quarter of 2027

Likely Resolves by Q3 2027

Discussed by: NRG and LS Power, in their joint announcement

Both companies target a second-quarter 2027 close. The sale needs approval from the Federal Energy Regulatory Commission, the New York State Public Service Commission and federal antitrust reviewers under the Hart-Scott-Rodino Act. If those clear, the plants return to LS Power.

2

Regulators attach conditions or delay the sale

Possible Resolves by End of 2027

Discussed by: Power-sector trade press covering the required approvals

FERC or the New York Public Service Commission could condition approval on market-power remedies or delay the transaction past the targeted window. The New York assets, including the 2,050 MW Ravenswood site, make state review the likeliest friction point.

3

NRG spends the proceeds on a new acquisition

Possible Resolves by End of 2027

Discussed by: NRG management on its third-quarter earnings call

NRG said proceeds will fund $3 billion of share repurchases across 2026 and 2027 and $3 billion of debt reduction, with the remainder reserved for 'contracted growth investments.' A large new purchase would show the sale was a portfolio shift, not a retreat.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

May 2025 - January 2026

NRG buys LS Power's plants for $12 billion (2025-2026)

NRG agreed to buy 18 gas-fired plants from LS Power in a deal valued at about $12 billion, announced in May 2025. The acquisition closed on January 30, 2026, adding capacity across ERCOT, PJM, NYISO and ISO New England.

Then

NRG gained a large gas fleet and the CPower demand-response business.

Now

Less than a year later, NRG sold six of the plants back, saying the offer was too good to refuse.

Why this matters now

The round trip is the clearest measure of how much these plants' value has moved in under a year.

February 2021

Winter Storm Uri (February 2021)

A severe winter storm knocked out gas supply and power generation across Texas, leaving millions without electricity for days. The failure centered on plants and fuel systems that could not perform in extreme cold.

Then

Texas regulators required power plants and gas facilities to weatherize.

Now

The event sharpened attention on firm, dispatchable capacity in ERCOT.

Why this matters now

It helps explain why Texas gas plants like Jack County command high prices in this deal.

Sources

(6)
POWER Magazine NRG Energy Power Engineering LS Power Hartford Business Journal Houston Business Journal