Texas Attorney General Ken Paxton has wrapped up a major Antitrust settlement with the Trump Administration's Department of Justice (DOJ), blocking a massive energy merger that state officials warned could have driven up electricity prices for millions of Texans.
The settlement focuses on Constellation Energy Corporation and Calpine Corporation, two power generators that supply a significant amount of the electricity flowing through ERCOT, a grid serving more than 27 million people.
The companies had planned a $26.6 billion merger, but Paxton's office and federal regulators determined the deal would give the combined company the ability to manipulate supply and increase wholesale electricity prices.
According to the Attorney General's Office, the merger could have raised costs by as much as $100 million annually, a cost that would have eventually landed on Texas families and businesses.
To move forward, Constellation and Calpine must now divest two Texas power plants, a condition Paxton says is non-negotiable for protecting consumers.
"My responsibility is to protect Texans from any arrangement that threatens to raise prices, especially in our electric grid, which millions of Texans depend on every single day," said Paxton. "This settlement means lower prices for Texans and helps ensure that no company can exploit its market position at the expense of our citizens."
Paxton framed the agreement as part of a broader effort with President Trump to keep the state's electricity system affordable and stable. With Texans still wary of grid vulnerabilities, Paxton said he intends to maintain pressure on any company that gains too much control over the energy sector.
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