Talen Energy signed definitive agreements on 15 January to acquire about 2.6GW of natural gas generation in Ohio and Indiana from Energy Capital Partners for $3.45bn.
Why Talen Energy Corporation is buying Cornerstone Generation (Waterford, Darby and Lawrenceburg plants)
Talen said the deal expands its presence in the western PJM market, which it said has significant data-centre tailwinds, and diversifies its fleet. The 1,218MW Lawrenceburg and 869MW Waterford combined-cycle plants have an average heat rate of about 7,000 Btu/kWh and capacity factors above 80%, while the 480MW Darby plant is a peaking unit. Talen expected adjusted free cash flow per share accretion of more than 15% a year through 2030.
“This acquisition further diversifies Talen's generation portfolio by adding both baseload capacity and strong cash flow contribution and enhances our presence in the western PJM market, which has significant data center tailwinds”
Deal terms and financing
The price comprised about $2.55bn in cash and about $900m in Talen stock, equal to about 6.6 times expected 2027 adjusted EBITDA. ECP agreed to take about 2.4 million new Talen shares, about 5% of the enlarged company. Talen said it would issue new debt to fund the cash, and later used part of the proceeds of senior notes due 2031 and 2033 issued in April 2026.
Regulatory approvals and timing
The deal required clearance under the Hart-Scott-Rodino Act and approvals from the Federal Energy Regulatory Commission and the Indiana Utility Regulatory Commission. Talen announced on 15 June 2026 that it had completed the acquisition, with ECP receiving 2.4 million Talen shares and about $2.55bn in cash, subject to customary adjustments.
Market context
The deal followed Talen's 2025 acquisitions of the Freedom and Guernsey gas plants. ECP had held the portfolio, which it called Cornerstone Generation, since July 2025.
