Constellation Energy Corporation Submits Motion for Leave to Answer and Answer to Requests for Rehearing

Strategic Insights -

In a filing with the Federal Energy Regulatory Commission (FERC), Constellation Energy Corporation has submitted a motion for leave to answer and answer to requests for rehearing in response to the Commission's order conditionally authorizing the acquisition of Calpine Corporation. The motion clarifies the record and provides additional information to assist the Commission in its decision-making process. The PA OCA and the PPC Protestors had filed requests for rehearing, alleging multiple points of error in the Commission's order. The Applicants respectfully request that the Commission accept this answer and deny the requests for rehearing for the reasons explained herein.

Key Takeaways:

  • The Commission's order authorizing the Transaction was based on a comprehensive Delivered Price Test ("DPT") analysis and a proposed Mitigation Plan to address potential market power concerns.
  • The PA OCA's request for rehearing was denied by the Commission, which found that the Applicants had adequately explained why they declined to review the Transaction's alleged effects on default retail service procurement in Pennsylvania.
  • The Commission relied on well-established precedent and policy in concluding that the PA OCA was not an appropriate entity to request a retail-market review.
  • The Commission respected the PA OCA's authorization to monitor cases before regulatory agencies and represent the interests of Pennsylvania consumers, but declined to conduct a state-specific analysis because the Pennsylvania Public Utility Commission ("PAPUC") did not request it.
  • The PA OCA's argument that the generation supply procurements in Pennsylvania are wholesale transactions was correctly rejected by the Commission, as these procurements are conducted for the purpose of securing supply for default retail customers.
  • The Commission's precedent on new submarkets is clear, and the Applicants demonstrated that there are frequently binding transmission constraints during historically seasonal peaks and other competitively significant times in the proposed alternative geographic market.

Statistics:

  • The CN OCA filed a request for rehearing on August 22, 2025, alleging multiple points of error in the Commission's order.
  • The Commission's order authorizing the Transaction was over 100 pages long and was well-reasoned and supported by record evidence.
  • The Applicants provided a complete Delivered Price Test ("DPT") analysis and a proposed Mitigation Plan to address potential market power concerns.
  • The Commission received 31 questions from Commission Staff, which were responded to and supplemented in the Deficiency Letter Response.
  • The Deficiency Letter Response included an updated DPT analysis and responses to the 31 questions, which demonstrated that the Transaction, with the proposed Mitigation Plan, passes all market power screens.

Sources:

  • UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Constellation Energy Corporation Constellation Energy Generation, LLC Calpine Corporation on behalf of its Public Utility Subsidiaries Docket No. EC25-43-001 MOTION FOR LEAVE TO ANSWER AND ANSWER TO REQUESTS FOR REHEARING
  • 18 C.F.R. SSSS 385.212, 385.213 (2025)
  • Order No. 592, FERC Stats. & Regs. P 31,044 at 31,120 (1996)
  • Energy Harbor Corp., 186 FERC P 61,129 at PP 152-59 (2024)
  • Nat'l Grid, 117 FERC P 61,080 at P 47 (2006)
  • Revised Filing Requirements Under Part 33 of the Comm'n's Regulations, Order No. 642, FERC Stats. & Regs. P 31,111, at 31,918 (2000)